Mr Jones was disputing an unexpected tax bill of £42,000
|
BBC Radio 4's Money Box was broadcast on Saturday, 2 October, 2004 at 1204 BST.
The programme was repeated on Sunday, 3 October, at 2102 BST.
Family firms could face higher tax bills following a ruling by the Inland Revenue's Special Commissioners.
The commissioners found the Revenue was right to stop a married couple from reducing their tax bill by sharing their liabilities.
Partners and spouses often each draw an income through dividend payments as a means of reducing their overall tax bill.
But in the case of Mr and Mrs Jones of Arctic systems, the Revenue said the wife's dividend payments exceeded her contribution to the business.
As a result, it decided the dividends could only be treated as if they were all her husband's income.
Geoff Jones told us of his disappointment at the decision; and we were joined by Simon Juden of the Professional Contractors' Group which has been supporting the Jones's case.
Anne Redston from accountants Ernst & Young explained the implications this may have on other small businesses.
Producer: Jennifer Clarke
Presenter: Paul Lewis
Reporter: Jessica Dunbar
Web Producer: Nathalie Knowles
~RS~q~RS~~RS~z~RS~37~RS~)
One-Minute World News
News services
E-mail this to a friend
Printable version
Listen to this item
