Churchill Knight & Boox clients being investigated as Managed Service Companies

[rdw1970]

I've written to my M.P.

If you are affected by this please do the same!

Wrote to my MP too but auto-reply said he gets 200 emails a day from constituents and it can take 15 working days for a response. My MP has worked for DWP and his areas of interest mention the Treasury.

Other than mentioning the usual, I also highlighted how irresponsible I thought it was for HMRC to issue these determinations before completing their fact finding first and in doing so they've not shown a duty of care to the taxpayer. Also mentioned the time they've taken to respond to my appeal and the stress they've caused.

[eek]

Wrote to my MP too but auto-reply said he gets 200 emails a day from constituents and it can take 15 working days for a response. My MP has worked for DWP and his areas of interest mention the Treasury.

Other than mentioning the usual, I also highlighted how irresponsible I thought it was for HMRC to issue these determinations before completing their fact finding first and in doing so they've not shown a duty of care to the taxpayer. Also mentioned the time they've taken to respond to my appeal and the stress they've caused.

The excuse you will get is that Covid delayed their investigation and the delay meant that letters had to be issued prior to April 5th otherwise HMRC would not have sent them in time.

[isaaaaaaaaccc]

"But keep in mind, HMRC have six years to raise the NIC determinations for the same period, and these will be of a greater value than the tax determination already raise"

Anyone have any guidance on whhat NIC could be?

[GregRickshaw]

"But keep in mind, HMRC have six years to raise the NIC determinations for the same period, and these will be of a greater value than the tax determination already raise"

Anyone have any guidance on whhat NIC could be?

Why would NIC be greater value?

Surely we pay much more in income tax than National Insurance, so not sure why everyone thinks the reclamation of lost revenue would be higher for NIC than for PAYE?

If I owe X thousands of pounds in unpaid income tax, I wouldn't owe more in NIC

[eek]

Why would NIC be greater value?

Surely we pay much more in income tax than National Insurance, so not sure why everyone thinks the reclamation of lost revenue would be higher for NIC than for PAYE?

If I owe X thousands of pounds in unpaid income tax, I wouldn't owe more in NIC

As with all these things it's the Employer NI that bites...

[rdw1970]

As with all these things it's the Employer NI that bites...

I also flagged this to my MP. Not only did Hector fail to provide the calculations to show how they arrived at the determination amount, they're undecided whether to pursue NI which is likely to be greater than PAYE, so we have this hanging over us as well.

[eek]

I also flagged this to my MP. Not only did Hector fail to provide the calculations to show how they arrived at the determination amount, they're undecided whether to pursue NI which is likely to be greater than PAYE, so we have this hanging over us as well.

I wouldn't say undecided, it's just that department didn't have a deadline of April 5th 2022 to meet.

[rdw1970]

I wouldn't say undecided, it's just that department didn't have a deadline of April 5th 2022 to meet.

The letter says, "As NI liability is a civil debt, it does not follow the same time limits as Tax. This means that we still have another 18 months before I need to consider taking any action via the County Courts to legally protect the debt. Taking proactive action via the courts incurs court costs that I would prefer to keep a minimum, hence why I am not taking proactive action at the momement"

Then they go onto say to avoid court costs we have the opportunity to acknowledge the NI debt and make a full payment.

[GregRickshaw]

I also flagged this to my MP. Not only did Hector fail to provide the calculations to show how they arrived at the determination amount, they're undecided whether to pursue NI which is likely to be greater than PAYE, so we have this hanging over us as well.

If you send in your conditional claims (for CT) your PAYE determination etc., should reduce to virtually nothing or a very small figure, so when CK are found guilty you won't have two big bills just the one for NIC (it seems) I think there is a way also to claim on your dividends actually too. The deadline for the dividends claims is a year away but still worth getting them in.

Always remember though to separate yourself from the herd as the CUK article says. Even when CK are found guilty there is still a way to prove you are actually not an MSC.

[mogga71]

Then they go onto say to avoid court costs we have the opportunity to acknowledge the NI debt and make a full payment.

LOL ... do they seriously expect anybody to do this?

The bit about avoiding court costs maybe bodes well for the small number of CK and Boox clients who managed to close their companies as that would require court costs to reopen the company and then more costs to get the NIC?