Service Companies Box

Poodle

Hi

When calculating the figure that goes into Box 1 of the service companies section on page TR4 on a personal tax return do you include the tax credit for dividends?

Elsewhere this would be input net but I am unsure about this one.

Help please

Poodle

deanshepherd

Yes, you include the gross dividend with tax credit but exclude other benefits received from the company.

Revised HMRC guidance here. Interesting article by a tax barrister claiming that the question is outside the scope of HMRC's powers anyway here.

Poodle

Hi Dean,

Thanks for that I had seen the HMR&C link, I just missed the grossed up narrative on the example line:001_wub:

I am aware of the discussions that have been happening regarding the disclosure of this information on the tax return from the taxation mag, and if it is in fact legal for the revenue to ask for this since the information is not required and has no relation to the actual computation of the tax liability of an individual and that is what a tax return is intended for.

Just trying to get the IR35's.

Should be interesting to see how this type of thing progresses in future tax returns with the information questions being asked

Poodle