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EOY Summary and IR35 question

EOY Summary and IR35 question

I'm looking at completing the EOY summary for payroll and the question has changed slightly regarding service companies and IR35.

We used to tick Yes to Service Company but No to operating under IR35 however this is now amalgamated into one question.

If I have a one director/shareholder company who does 100% of the work, he used to be classed as a Service Comapny.  Does not mean he needs to operate IR35 though. Therefore I cannot answer this question accurately.  What is the solution please?


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26th Mar 2014 15:31

think I've got the answer


'Yes' if you are a service company - 'service company' includes a limited company, a limited liability partnership or a partnership (but not a sole trader) - and have operated the Intermediaries legislation (Chapter 8, Part 2, Income Tax (Earnings and Pensions) Act 2003 (ITEPA), sometimes known as IR35). Otherwise indicate 'No'. 

I think reading above HMRC guidance the answer must always be NO unless IR35 has been operated.

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26th Mar 2014 15:57

Yes - No is the right answer

... in your case.

The problem is whether IR35 has been operated for a personal service company to which it applies when a salary has actually been paid equal to or in excess of the minimum required by IR35.  Yes - IR35 has been operated - or No - there is no deemed payment arising, so the IR35 rules have not come into play.

Have a look at this recent thread.

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26th Mar 2014 16:09

Thanks - I tried searching for an earlier similar type of question and came up with nothing.  Obviously asked the wrong search question!

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