I see from the draft 2007/08 Tax Return that, as expected, HMRC have included the box "How much of your income is derived from the provision of your services through a service company".
I recall that this was to be included as a way of monitoring income taken from OMBs to ascertain, among other things, how much NI was being saved by e.g. paying low salaries and high divis. I also recall that the consensus in the profession was that they were not allowed to ask this for the very same reason, i.e. it was nothing more than a fishing exercise and a statutory form was not the place to gather such info. As such, the inclusion of this box would be faught.
Do I assume therefore that we have lost this argument?
TBB
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Before this thread is re-invented
https://www.accountingweb.co.uk/cgi-bin/item.cgi?id=181474&d=1032&h=1019&f=1026&dateformat=%25o%20%25B%20%25Y
Not clear how to complete this box
Must this box be completed?
If so, we would need to decide:
1. What is a "service company"? The guidance says " a company through which you provided your services personally". So would a company providing say printing services or market research services qualify?
2. What is the level of dividend income? If someone receives a net dividend of £9,000 then technically their gross income is £10,000 (though the £10,000 figure is not shown on the tax return anymore) so which figure do they want? To add a gross salary to a net dividend would not be comparing like with like.
It is still there
My 'brick' arrived today and the final version of the 07/08 SA return still contains this question. The guidance on how to complete the return at page TRG 15 says you "should" (not "must") complete the box....
I practice through a limited company without employees so it appears that I will have to make this disclosure on my personal return and having done a quick search of the ICAEW website I cannot find any comment on this issue.
Tim