Feedback

Having read Anne Redston's article in Feedback (Taxation 15 June 2000 at page 277) and discussed this issue with Anne and others closely involved in discussions with the Revenue over IR35 we have a major concern regarding the withdrawal of funds from businesses caught by the proposed legislation. Anne wrote:
'The only way in which the net deemed Schedule E payment can be withdrawn from the company without further tax being suffered is as a dividend because specific legislative provisions prevent double taxation.'
This implies that tax and National Insurance would be due again as and when the net cash available was drawn from the business.
This statement rang alarm bells as we had understood that once Schedule E tax and National Insurance had been accounted for on the deemed salary (on 5 April) the net amount could be withdrawn without tax and National Insurance...