ACCOUNTS experts have issued guidance for businesses whose tax position may have been affected following the outcome of the landmark Arctic Systems tax case.
In April this year, the High Court ruled in favour of the Inland Revenue, in a case concerning the small IT consultancy run by Geoff and Diana Jones.
The judge ruled that Mr and Mrs Jones could not reduce their joint tax bill by paying a smaller amount to the main breadwinner and sharing out profits equally as dividends.
Chas Roy-Chowdhury, head of taxation at the Association of Chartered Certified Accountants, said: "Our guidance should clarify how businesses - particularly those involving a husband and wife partnerships and companies - should treat the dividends on their tax return.
"Whilst the self-assessment deadline is not until January 31 2006, it is unlikely that the appeal will have been heard by then to provide a definitive answer, so we advise that the guidance is considered."
To find out more, telephone 0141 532 2000, or log onto: www.info@accaglobal.com
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