Churchill Knight & Boox clients being investigated as Managed Service Companies

[GregRickshaw]

The likes of Paystream and Parasol are better known as Umbrella firms (for Inside IR35 clients) so am not sure they would bother with those as they would likely be wasting their time with the vast majority of their clients. But yeah I get your point and its incredibly worrying.

I would love to know the percentage of contractors blissfully still using the likes of InniAccounts who have no idea of the potential problem. I would guess the majority of them?

Paystream have a LTD company arm to their services

[gikap]

Some things though have you got your REg 80 determination letter for 17/18 (and the others too possibly)

I have received REg 80 determination letter for 17/18 in March 22 and i let Boox appeal which was probably another bad decision. HMRC in May 22 confirmed appeal and in December 22 i received another mail from HMRC saying appeal was unsuccessful and that i can expect more determination letters for 18/19 and 19/20. Now i am waiting for these new letters but this time i will have to appeal myself and i have no idea where to look for help with this.

[Fred Bloggs]

The likes of Paystream and Parasol are better known as Umbrella firms (for Inside IR35 clients) so am not sure they would bother with those as they would likely be wasting their time with the vast majority of their clients. But yeah I get your point and its incredibly worrying.

I would love to know the percentage of contractors blissfully still using the likes of InniAccounts who have no idea of the potential problem. I would guess the majority of them?

Anecdotal evidence from CUK would suggest the vast majority of clients will still be there. Given the apparent reluctance of people to switch accountant even when the customer service is truly dire it would suggest most clients will still be using the same accountant for many years. And outside of here, realistically, how many people actually know these cases are under way? I suggest that anyone asking around the office will draw a blank look from maybe 99% of contractors.

[jamesbrown]

The likes of Paystream and Parasol are better known as Umbrella firms (for Inside IR35 clients) so am not sure they would bother with those as they would likely be wasting their time with the vast majority of their clients. But yeah I get your point and its incredibly worrying.

The issue with using umbrellas will be when you flip back and forth between inside and outside roles, specifically the outside roles and whether the umbrella provider looks like a "solution" in that context (i.e., Chapter 9).

[ritwolf]

Please help, I wasn't aware of this.

I was with Boox between 2018 - 2020 before I switched accountants. My current accountants just sent me today a scanned copy of the letter (which is dated December'22 but he just received a few days ago).

This letter is not the determination one but the previous one where they inform me that they consider my company to be a MSC. There are no amounts specified.

I have started reading this thread and hoping to catch up in the next few days. Is there anything I can do now or do I have to wait until I receive the determination letter?

[Raptors88]

Well if you did that then you are off the hook, I have documented here exactly why I was off the hook for 17/18 and 18/19 because I ran my business as a consultancy practice with multiple employees. HMRC have recognised this and for 17/18 so far removed my company from the investigation, they should do the same for 18/19.

Get onto your tax advisor or HMRC directly and have this pointed out. I am really surprised CK have not done this for you.

No date on returning my PoA money though, in fact last time we chased it they were extremely vague about who exactly had it despite having it ring fenced to this investigation.

I don’t actually have a tax adviser (I only use Churchill Knight for accounts). Did you just write to HMRC directly with your specific situation? I have proposals showing multiple consultants/associates within a project - maybe this could serve as sufficient evidence?

[eek]

I don’t actually have a tax adviser (I only use Churchill Knight for accounts). Did you just write to HMRC directly with your specific situation? I have proposals showing multiple consultants/associates within a project - maybe this could serve as sufficient evidence?

proposals aren’t enough - you will need go show payments from your company to those people

[mogga71]

Paystream have a LTD company arm to their services

Yip I know .... I am actually with them ....thats why I said 'better known' as Umbrella Companies. If HMRC want to target them then they will have to just target the LTD Company clients as they can't say Paystream is a MSCP so everybody will be hit with letters as it would be a total waste of time and resources for the 'always' Umbrella clients which I would guess would be the majority of their clients.

[Fred Bloggs]

I don’t actually have a tax adviser (I only use Churchill Knight for accounts). Did you just write to HMRC directly with your specific situation? I have proposals showing multiple consultants/associates within a project - maybe this could serve as sufficient evidence?

I believe you will have to show evidence like employment contracts and pay roll documents to convince HMRC that you weren't a one man band.

[Fred Bloggs]

Please help, I wasn't aware of this.

I was with Boox between 2018 - 2020 before I switched accountants. My current accountants just sent me today a scanned copy of the letter (which is dated December'22 but he just received a few days ago).

This letter is not the determination one but the previous one where they inform me that they consider my company to be a MSC. There are no amounts specified.

I have started reading this thread and hoping to catch up in the next few days. Is there anything I can do now or do I have to wait until I receive the determination letter?

It's set out very clearly what you need to do throughout this thread. I am afraid you are going to have to read more of the thread. It's all there.