Self Assessment: Tax advice clinic launched

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Robert Lovell
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Self Assessment season is often a difficult time of the year; with so many different areas of tax to get to grips with, it can be hard to find the right advice.

To help during this stressful period AccountingWEB has teamed up with Tolley and put together a shortlist of hot topics ranging from 'annual maxima' through to 'wear and tear allowances'.

Let us know the areas in which you need the most support and Tolley will draw on its extensive TolleyGuidance range of resources, including guidance notes, worked examples, template documents and checklists.

Simply vote from the list of topics and Tolley will publish material on AccountingWEB covering the 10 topics that get the most votes.

Which areas of tax do you most want advice about? Visit the Tolley voting page to tell us the key areas you would like support in.


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07th Dec 2012 12:39

The “service company” question ...

Needs careful attention.

The guidance from HMRC on their notes (page 21) which accompany the tax return runs as follows:-

In order to determine whether your company is a “service company”, three tests have to be considered:
• an individual performed services (intellectual, manual or a mixture of the two) for a client(s), and
• the services were provided under contract between the client and the service company of which at any time during the tax year, the individual performing the services was a shareholder or partner, and
• the service company’s income was, at any time during the year, derived wholly or mainly (that is, more than half of it) from the services performed by the shareholders or partners personally.

According to HMRC’s guidance, if you can answer yes to all three of these, then your company is a service company and you should enter the amount of your salary and grossed-up dividends from this company on the box on your tax return.

Notice that they've dropped the "personal" and it is now just "service company" and that te make no mention of whether the services are performed on the client's site, which was a main component of the disguised employee under IR35.


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07th Dec 2012 16:15

Payment on account?

Should a PAYE underpayment from an earlier year coded out in the current year be included for the purposes of a payment on account for next year?

Software provider says yes, I not so sure when reading legislation.

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