|
Limited Company Contractors Set up your company online via Duport |
Geoff Jones of Arctic Systems has won his landmark Section 660A appeal.
The case, supported by the Professional Contractors Group (PCG), was heard in late November this year.
Welcoming the judgment, PCG chairman Simon Juden, said,
"This is the best Christmas present for the UK's small family businesses. It means proper recognition for the hundreds of thousands of people who choose to run their own businesses, share the burdens and the hard work with their partners, and rightly expect to share the profits of their efforts."
Jones, who was at the Royal Courts of Justice with his wife Diana, said, "This is the end of three years of uncertainty for us - at one point we thought we'd lose our home. It's been extremely stressful and we've been made to feel like criminals, just for running our own business. What's more, by organising our affairs in this way, we were simply following government advice and that of our accountants."
The Section 660 rule, has been UK legislation since the 1990's. Its primary aim was to prevent people passing across assets and income to family members in an effort to reduce their tax liabilities, whilst intending to reclaim those assets at a later date. However, this rule was not, until recently, applied to company dividend payments.
In the Arctic Systems case, the tax authorities objected to the manner in which the couple involved remunerated themselves with a mixture of salaries and dividends, which had the effect of reducing their joint tax liability.
The appeal is very good news for "husband and wife" businesses - we will report any further developments on Contract Eye.
For full details of the ruling, and analysis, try these links:
- Accountax full analysis of the ruling (PDF)
- Ross Martin Tax Consultancy analysis of the ruling
| Our Partners |
|
Parasol PAYE umbrella Award winning service |
|
Contractor Accountants Full Service, Fixed Fee! |
|
Free Umbrella Company Save over £1400 p.a. |
|
ClearSky Accounting From £95 per month |
|
Fixed Fee Accounting Contractor Specialists |
|
Umbrella4Contractors Low fees, same day setup |
|
Free IR35 / Tax Review Call ICS - 0800 195 3750 |
|
Umbrella Co. Solutions Only £19.95 per week |
|
PRINCE2, MSP & M_o_R Maven Training |
| Contractor Insurance |
|
Hiscox Office Insurance Instant Online Quote |
|
IR35 Insurance Essential Protection |
|
Income Protection If you're unable to work |

| Contractor Services |
|
Compare Insurance Deals PI & Business Liability |
|
Contractor Ltd Company Instant online formation |
|
IT Contractor Pensions The last great tax break |
|
Private Medical Insurance Tailored contractor cover |
|
IT Contractor Mortgages Based on hourly rates! |
|
Protect Your Income Get a PHI quote |
|
IT Contractor Life Cover Protect your dependants |
|
Critical Illness Cover Comprehensive cover |
| IT Contractor Guides |
|
Contractor Umbrella Umbrella Co. Advice |
|
Contractor Accountant Accountancy Directory |
|
Contractor Rates Latest rate news |
|
IR35 Factors Are you caught by IR35? |
|
Corporation Tax IT Contractor Guide |
|
IT Contractor Mortgages Get a mortgage quote |
|
Contractor Insurance Guide to contractor cover |
|
IR35 Contract Contract review guide |
|
Contractor Life Cover Contractor protection |
|
IR35 Insurance Tax investigation cover |
|
Contractor PI Insurance IT contractor cover |
|
Umbrella Companies Links to key providers |
|
What is IR35? Guide to the tax rules |
|
IR35 Compliance Is your contract caught? |
|
Critical Illness Cover Guide for contractors |
|
Security Clearance How do you get it? |
Stay up to date with our RSS feed | Terms of Use | About Us | Directory | Site Map | MSC Legislation | Income Shifting
Copyright © 2006-9, Contract Eye Limited, All Rights Reserved.
UK Contractor Guides, Contractor Accountants, Umbrella Companies, IR35, Insurance, Contractor Mortgages
Design by Blue Egg Web Agency