Churchill Knight & Boox clients being investigated as Managed Service Companies

[ritwolf]

Received a letter about the current status of things: instead of 5, there will be 1 single lead case

For those who appealed and got the charges stood over, and are still happy to continue with this position, I think there is nothing to do. To me, it looked like it was just a status-update letter. But please do post if any comments/suggestions.

[GregRickshaw]

Im wondering whether to shut the company down. If any refunds materialise from HMRC, will have to re-open the company and you can only do that within six years of closing. It's 2025 and the test cases have not gone to trial yet. If the court cases drag on longer than six years any refunds to the closed company will go to the Crown. No idea what to do.

Again unfortunately you won't be able to shut your company down (if you mean to strike it off) HMRC won't allow it.

[plowpoelw]

Unfortunately I contacted them a couple of times to try and argue my point with a ton of evidence showing how I was independent of control, had my company set up before contracting Boox and generally showing the PSC/Accountant relationship with me getting accountancy (not tax) advice and telling them how much I wanted to pay myself which varied month to month...usually against the guidance of Boox.. They have been silent for a long time...Guess I'll file my last Corp tax for up to Apr 24 and see if they will lift the block to shut the company.

Im wondering whether to shut the company down. If any refunds materialise from HMRC, will have to re-open the company and you can only do that within six years of closing. It's 2025 and the test cases have not gone to trial yet. If the court cases drag on longer than six years any refunds to the closed company will go to the Crown. No idea what to do.

[Fuzzynavel]

CK clients too, I didn't see the news on the article you linked, but we were advised of this about a month ago. I don't truly think many of us were surprised (annoyed yes) surprised no. I'm sure there are multiple 100s of contractors who never took any action at all from the very first letter.

Unfortunately I contacted them a couple of times to try and argue my point with a ton of evidence showing how I was independent of control, had my company set up before contracting Boox and generally showing the PSC/Accountant relationship with me getting accountancy (not tax) advice and telling them how much I wanted to pay myself which varied month to month...usually against the guidance of Boox.. They have been silent for a long time...Guess I'll file my last Corp tax for up to Apr 24 and see if they will lift the block to shut the company.

[GregRickshaw]

It's good news - it means their target number goes down and so they devote less resources to it.

As I have said for a long time, they are merely honing in on the targets.

They don't care about the collateral which got in their way.

They have always been about trapping just a few in an inescapable trap, to get their legislation, that's all this has ever been about.

Once they have that it will send the remaining PSCs into the arms of umbrellas and a PAYE structure.

[Guy Incognito]

It's good news - it means their target number goes down and so they devote less resources to it.

[GregRickshaw]

Did anyone spot this last week?

https://www.accountingweb.co.uk/tax/...cape-crackdown

CK clients too, I didn't see the news on the article you linked, but we were advised of this about a month ago. I don't truly think many of us were surprised (annoyed yes) surprised no. I'm sure there are multiple 100s of contractors who never took any action at all from the very first letter.

[ladymuck]

Did anyone spot this last week?

https://www.accountingweb.co.uk/tax/...cape-crackdown

HMRC has been accused of “stunning incompetence” by a leading employment status expert after 246 former clients of Boox who failed to appeal PAYE determinations under the managed services companies (MSC) legislation may get off, whereas the 915 that did file an appeal may end up having to pay.

[nekro]

Glad I didn't make POA.

[jamesbrown]

Also worth noting that you can make a payment on account to avoid this interest.