Churchill Knight & Boox clients being investigated as Managed Service Companies

[GregRickshaw]

Indeed - they have made their calculations assuming 100% of the company revenue was paid to the worker - which of course would make sense if we were really MSCs.

100% of the company revenue, minus CT, VAT, PAYE (*2), NIC, Pensions...... is probably exactly how most
LTDs operate (this kind of LTD anyway) its just they probably weren't managed by anyone as HMRC are claiming.

[dochkaian]

I have a question, pension contribution payments made directly by my Ltd company. Is it correct to assume these will not be subject to employers and employees NI? I've taken that they will not be subject to PAYE as a given.

I'm working out my worst case HMRC bill.

[jamesbrown]

I have a question, pension contribution payments made directly by my Ltd company. Is it correct to assume these will not be subject to employers and employees NI? I've taken that they will not be subject to PAYE as a given.

I'm working out my worst case HMRC bill.

Yes, pension payments are safe (assuming they were made within the usual rules).

[coxy]

Are we aware of any other accountancy firms other than CK or BOOX being investigated as of now?

[dochkaian]

Thanks, that is good news regarding pension payments. Hopefully it won't come to that.

[dochkaian]

Are we aware of any other accountancy firms other than CK or BOOX being investigated as of now?

No not as far as I can establish. I did speak to Qdos awhile ago and did not mention any others about from CK and BOOX.

[eek]

Are we aware of any other accountancy firms other than CK or BOOX being investigated as of now?

If HMRC decide to attack other firms that offered similar offerings, no one would really know until HMRC sent letters next March (2023).

[DealorNoDeal]

Perhaps no other accounting firms operated in the same way as CK and Boox? CK and Boox were exceptions?

If there were other firms, which were similar, you'd think there would be an onus on HMRC to open protective enquiries to protect revenue.

[eek]

Perhaps no other accounting firms operated in the same way as CK and Boox? CK and Boox were exceptions?

If there were other firms, which were similar, you'd think there would be an onus on HMRC to open protective enquiries to protect revenue.

I can think of at least 1 other firm that could easily fall foul of HMRC's interpretation of the rules and there will be more.

But it then comes down to the fact the next deadline for opening protective enquiries is April 5th. 2023 (for 2018/19 enquiries) so HMRC have until late March / April to kick things off.

And currently HMRC are focussed on sending letters out for people who used loan schemes and didn't declare them.

[jamesbrown]

Perhaps no other accounting firms operated in the same way as CK and Boox? CK and Boox were exceptions?

If there were other firms, which were similar, you'd think there would be an onus on HMRC to open protective enquiries to protect revenue.

Cough, Brookson. There will be many others, though. Especially look out for accountants with bespoke portals that package things in a way that looks like a "solution", such as different levels of service or umbrella plus accountancy under one roof (depending on how things go with CK/Boox, the latter is going to be a big issue, IMHO, as others have pointed out too).