BrassTax news

More on Service Companies

Further to our recent BrassTax, HMRC have now issued amended guidance on the controversial "service company" question. It's bad enough that the question (of dubious legal validity) was on the return in the first place: it's worse that the guidance was hopelessly unclear: and it's simply mind-boggling that it has taken five months to issue further guidance. What on earth is happening at HMRC?

Anyway, the revised guidance is to be found on the Revenue's website where HMRC "acknowledge that with hindsight the question on the tax return and original guidance were unclear, for which we apologise". So that’s all right then. Although HMRC still unhelpfully fail to give examples of companies which are or are not considered to be "service companies", the revised guidance is consistent with the views we have previously expressed and our guidance note remains unchanged.

For help on this or any other (tax!) matter please contact help@bkltax.co.uk or your usual consultant. And for more on BKL Tax visit our revamped website www.bkltax.co.uk.