P35 query

[missright]

Hi all

I am a little stumped on one of the questions on the p35 and it seems to have caused a stir with alot of people!

I work as a locum and operate a limited company. I do not fall within IR35.

I just wondered how to answer the service company's question. I appear to meet the definition of a Service company according to HMRC's definition. However, I just wondered:

- if this particular question only applied to those that do fall within IR35
- if I should be answering 'yes' to the first part of this question and 'no' to the second part.

I have searched other forums on this but all seem to have different answers!

Any clarification would be much appreciated!

[David Griffiths]

Everybody seems to have a different take on it.

For me there's little doubt that you have to answer yes to the first question. Your company provides personal services, end of debate.

For the second question, there are two points of view

- the first is that you answer no because the IR35 legislation doesn't apply

and

- the second is that you answer yes on the grounds that you've applied it but don't have to do anything!

Personally I think the first question is what the Revenue would expect you to answer, and I think that's correct. However, it's badly worded, and you can make a case for the second.

[Williams lester]

We normally opt for YES and NO for clients of similar type to the OP.

[missright]

Thank you both for your replies!

Just to clarify it doesn't matter whether I fall within IR35 or not, I should still answer 'yes' to part one of the service company's question?

Won't this prompt questions from hmrc??!!

[MrPAYE]

Thank you both for your replies!

Just to clarify it doesn't matter whether I fall within IR35 or not, I should still answer 'yes' to part one of the service company's question?

Won't this prompt questions from hmrc??!!

Why should this concern you, you've already said you're outside of IR35.