Churchill Knight & Boox clients being investigated as Managed Service Companies

[Guy Incognito]

It's 9 months since HMRC put people under investigation.

Ahem. Since they sent letters saying we've done no due diligence but we are going to miss the deadline, we could be wrong but it may be £x.

[DealorNoDeal]

Sadly the company we know about who had the review and now face a FTT have vanished from any form of communication.

If/when they realise just what they've got themselves into, and how much decent representation costs, they might change their mind and settle instead. Even if they were to win at the FTT, HMRC would appeal, and they'd find themselves in a protracted legal battle (UTT -> CofA -> SC).

I wonder if they also realise that they're going to be in the news? A test case like this, with such wide ramifications, will be extensively reported.

[GregRickshaw]

I have a feeling momentum is shifting towards settlements (not to be confused with horse trading 'loan charge/DR' settlements of old). If HMRC can get the figures correct and agreed my opinions is there will be much larger take up than thought. A long TTP and I believe many would just pack up and go home.

From the rudimentary figures calculated using this forum and some of the posters and the liabilities are probably manageable.

Settle, or the sword of Damocles hanging over companies for many years, then settling may be much more palatable.

[eek]

If/when they realise just what they've got themselves into, and how much decent representation costs, they might change their mind and settle instead. Even if they were to win at the FTT, HMRC would appeal, and they'd find themselves in a protracted legal battle (UTT -> CofA -> SC).

I wonder if they also realise that they're going to be in the news? A test case like this, with such wide ramifications, will be extensively reported.

Let’s just hope the tribunal is told they have settled and hmrc don’t start a tribunal without opposition to get their desired “facts” into case law.

[DealorNoDeal]

Let’s just hope the tribunal is told they have settled and hmrc don’t start a tribunal without opposition to get their desired “facts” into case law.

This is one case where HMRC probably won't want the TP to settle. With the amount of legal firepower HMRC will throw at it, it will definitely be a David -v- Goliath.

I imagine it could end up being as high profile as Arctic Systems.

[GregRickshaw]

This is one case where HMRC probably won't want the TP to settle. With the amount of legal firepower HMRC will throw at it, it will definitely be a David -v- Goliath.

I imagine it could end up being as high profile as Arctic Systems.

Can HMRC do that if the company comes with the chequebook?

[DealorNoDeal]

Can HMRC do that if the company comes with the chequebook?

If you mean, can HMRC refuse to settle? The answer is no.

They could drag their heels agreeing a settlement but it wouldn't get them anywhere. The FTT would not hear a case where the TP has formally requested a settlement.

NB. settling means withdrawing your appeal; no appeal means nothing for the FTT to hear

[RightAngle]

Has anyone sought representation and settled the case with HMRC regarding the MSC investigation? If so, could you recommend the person who represented you, legal or otherwise?

Thank you.

[Syrinx]

I had a letter arrive yesterday dated 7th December. In part it says

"HMRC's Position

After reviewing the affairs of Churchill Knight, HMRC's position as it stands is that they are a Managed Service Company Provider.
Client companies who used the services of Churchill Knight are deemed to be Managed Service Companies. This includes <my company name>."

It goes on, and on, then says the next actions is they are advising Determinations and Decisions will be issued over the coming months. Formal notices as to amounts. They also include your right to appeal.

[RightAngle]

I had a letter arrive yesterday dated 7th December. In part it says

"HMRC's Position

After reviewing the affairs of Churchill Knight, HMRC's position as it stands is that they are a Managed Service Company Provider.
Client companies who used the services of Churchill Knight are deemed to be Managed Service Companies. This includes ."

It goes on, and on, then says the next actions is they are advising Determinations and Decisions will be issued over the coming months. Formal notices as to amounts. They also include your right to appeal.

Sorry to hear this news Syrinx. We are all in a similar situation unfortunately. What do you think you will do?