Brookson, could i get in trouble with VAT man???

[bluefunk]

Just had a converstion with my Agency who wanted to warn me off using Brookson (off the record) becuase there is the potential of the vat man coming after me.

I work through a PSC called "Brookson xxxx Ltd" as most do and apparnetly this is the weak point.

Anyone else think this or is it scare mongering to get me to move to a nominated company?

(I have worked as PSc with Brookson since April like most and been with them over a year with no problems at all)

Cheers.

[[email protected]]

mmmm, don't see the vat implications here. However, if you have a PSC called "Brookson xxxx Ltd" and you are with Brookson, this throws up the question Is Brookson an MSC, the very scheme which HMRC outlawed from April. If this is the case, HMRC could come after you for additional tax/nic's.

[xoggoth]

I think www.shout99.com has done some articles on MSCs and on Brookson specifically. Have a search there. There is some recent clarification as to when contractors will/will not be pursued

However, if you have only been using it since April and the law changes came in in April, one would assume that Brookson and other companies will have changed their procedures to accord with the new regulations, so it would be bizarre if you did have a problem. Why not ask them?

[[email protected]]

kind of a red rag to a bull though if Brookson have "PSC's" called Brookson xxxx Ltd, Brookson yyyy, Brookson zzzz, etc.

[bluefunk]

Well I was using Brookson to pPril as in an MSC then went to PSC where they basically only work as my Accountant, i.e. I have an RBS business Account and I pay all vat, ni etc directly from that (on Brooksons advice) but I have full control.

The only thing that worrys me in that my agency didn't like that brookson called my buniness "brookson xxxxx Ltd" and believed that this could result in follow up by the HMRC at some point...

I believe I am covered but I am just checking better to be sure eh?

Thanks for your answers.

[exbrm]

Brookson

This was posted by HMRC a few months ago:

"As part of HMRC’s monitoring the effects of Chapter 9 ITEPA, letters will be issued shortly to those known Service Providers whom HMRC believes to be MSC Providers. The letters will asks Service Providers for limited information on the business models provided to clients and the numbers of clients within each business model.

Provision of the information is purely voluntary but as many Service Providers advertise their business models, HMRC anticipates a good response."

If you are not sure where you stand I suggest you ask Brookson:

a) If they received such a letter.
b) If they replied.
c) If appropriate, what they said.
d) Has there business model been accepted by HMRC as compliant

Their usual response is to waffle on about welcoming stricter regulations, blah, blah, blah, but remember if they get it wrong it is you that has to cough up.

[bluefunk]

This was posted by HMRC a few months ago:

"As part of HMRC’s monitoring the effects of Chapter 9 ITEPA, letters will be issued shortly to those known Service Providers whom HMRC believes to be MSC Providers. The letters will asks Service Providers for limited information on the business models provided to clients and the numbers of clients within each business model.

Provision of the information is purely voluntary but as many Service Providers advertise their business models, HMRC anticipates a good response."

If you are not sure where you stand I suggest you ask Brookson:

a) If they received such a letter.
b) If they replied.
c) If appropriate, what they said.
d) Has there business model been accepted by HMRC as compliant

Their usual response is to waffle on about welcoming stricter regulations, blah, blah, blah, but remember if they get it wrong it is you that has to cough up.

Cheers - Answer is appreciated

[bluefunk]

I have spoken to Brookson who say that they are the only company (of the ilk) that have worked with HMRC so all is fine?

Anyone back this up? Just want to cover all exits etc as obviously this is what Brookson would say.

Anyone? cheers.

[exbrm]

Dodgy? Ask HMRC.

Ask HMRC then..............

http://www.hmrc.gov.uk/employment-status/info.htm

It's a direct email facility. See if you get an unequivocal response, I couldn't six months ago. I suppose the cloudy environment suits them. Brookson used to boast about "their compliancy" with HMRC but that was mainly regarding IR35 checks through their working practices for such. That is not questioned at the moment - this is to do with the new MSC legislation and is unlikely to be tested in the courts for at least two years. As I said previously, it's you that will have to cough up, not them. The only reassurance is defence in numbers and the commercial clout of Brookson.

[Cowboy Bob]

If any company says they have any kind of special agreement or special working relationship with HMRC, they are lying. HMRC do not enter into such agreements.