Managed Service Company Tax Demand

**TheFaQQer** · 4 December 2007, 11:00

Take professional advice, quickly.

**Bluebird** · 4 December 2007, 11:28

Originally posted by heinz View Post

My previous Managed Service Company (3 letters, first letter J) has sent me a £3500 tax demand for 06/07. I think they have decided they need some more money as this did not happen the previous year, and they shut down all the MSC thanks to Gordon's ruling. Can I fight this? Probably not, since I was a director but not the owner of the MSC - I assume they can charge me what they like by juggling figures around. Its a shock - what shall I do?

What sort of tax ?

**simondolan** · 4 December 2007, 11:46

Originally posted by heinz View Post

My previous Managed Service Company (3 letters, first letter J) has sent me a £3500 tax demand for 06/07. I think they have decided they need some more money as this did not happen the previous year, and they shut down all the MSC thanks to Gordon's ruling. Can I fight this? Probably not, since I was a director but not the owner of the MSC - I assume they can charge me what they like by juggling figures around. Its a shock - what shall I do?

Are you sure this isn't just the bill for the higher rate tax due on the dividends you would have received? It will certainly have nothing to do with the MSC legislation.

**sidknows** · 4 December 2007, 12:19

worried

Please clarify this as I was with the co you refer to and do not want the same type of demand

**heinz** · 4 December 2007, 12:36

NI Class 4

Its not TAX, its something to do with Class 4 NI contributions,
which I thought I had paid. But they get my NI number wrong
and my dob. All I can say its SCARY. Been to toilet several times already.

**Bluebird** · 4 December 2007, 12:48

Class 4 is for self employed isn't it ?

**BrilloPad** · 4 December 2007, 12:50

Originally posted by Bluebird View Post

Class 4 is for self employed isn't it ?

Class 1 is regular NI. Class 2 is the regular payments you make if self employed(about £2.20 per week). class 3 if you not employed and want to get pension (about £6.60 per week).Class 4 is the 8% of what you earned if you pay class 2.

**Sockpuppet** · 4 December 2007, 12:53

Surely then this means that they are in error not you.

If they haven't run the company correctly then TS....gordo can chase then for it. Not sure how getting your NI number wrong as the only thing AFAIK that changes NI contributions is if you are a director or not and they can hardly mess that up.

**Kylie4485** · 4 December 2007, 15:56

is the second letter M or S

Managed Service Company Tax Demand