How will those MPs be completing the new section of the Self Assessment return marked "Service Companies"?
The current guidance states:
Complete this box if you provided your services through a service company. You provided your services through a service company if:
* you performed services (intellectual, manual or a mixture of the two) for a client (or clients); and
* the services were provided under a contract between the client(s) and a company of which you were, at any time during the tax year, a shareholder; and
* the company’s income was, at any time during the tax year, derived wholly or mainly (that is, more than half of it) from services performed by the shareholders personally
Do not complete this box if all the income you derived from the company was employment income.
and 2008-9 the wording will change to:
If you provided your services through a service company (a company which provides your personal services to third parties), enter the total of the dividends (including the tax credit) and salary (before tax was taken off) you withdrew from the company in the tax year.