Churchill Knight & Boox clients being investigated as Managed Service Companies

[jagged edge]

I've tried searching and reading through all of the pages but may have missed a previous post. I submitted my signed DS01 to Churchill Knight in January 2018 and stopped paying them at that point. They stated it takes 9 months to close down and that I just had to wait.
In the end I didn't close down the company but transferred away from Churchill Knight as at 31/01/2018 and used Free Agent.

HMRC have sent letters through for all tax years up to 19/20. Am I right in thinking I should only be liable for the period that I used the company? I can't get hold of anyone at Churchill Knight and no idea if its possible to contact the team at HMRC

[antuk]

Ive just received an NI bill from HMRC, its addressed to me not the company but says the company is liable. Does not mention which years it covers, and is for an insane number (about 50% of what I took from the company over 3 years).

Is this appeal separate from the income tax appeal, it feels like they should be tied together, so not sure why I need to appeal this separately?

[Lotok]

Ive just received an NI bill from HMRC, its addressed to me not the company but says the company is liable. Does not mention which years it covers, and is for an insane number (about 50% of what I took from the company over 3 years).

Is this appeal separate from the income tax appeal, it feels like they should be tied together, so not sure why I need to appeal this separately?

You will need to appeal it separately.

[antuk]

Does have anyone have a template for the NI claim? Am wondering if I can send the same letter WTT sent for the income tax demand

[gikap]

Ive just received an NI bill from HMRC, its addressed to me not the company but says the company is liable. Does not mention which years it covers, and is for an insane number (about 50% of what I took from the company over 3 years).

Is this appeal separate from the income tax appeal, it feels like they should be tied together, so not sure why I need to appeal this separately?

I asked this same question Boox and DK but had no clear answer yet. i expect a clear answer in next few days and will post details here asap.

[stuckWithCK]

I'm thinking about making my company dormant and start fresh. Is it possible to do while this inquiry is till in progress?

[jamesbrown]

I'm thinking about making my company dormant and start fresh. Is it possible to do while this inquiry is till in progress?

You mean to limit exposure to the business under investigation? I don't think that will work for at least two reasons. First, the transfer of debt provisions, which flow down to the individual. Second, HMRC would (rightly) argue that it's the same trade and hence consider the income from both as part of the same business (but see the first point, because you pay if the business cannot).

That said, it certainly makes sense to limit your future exposure (e.g., by using an accountant for the year-end returns only).

[ritwolf]

Ive just received an NI bill from HMRC, its addressed to me not the company but says the company is liable. Does not mention which years it covers, and is for an insane number (about 50% of what I took from the company over 3 years).

Is this appeal separate from the income tax appeal, it feels like they should be tied together, so not sure why I need to appeal this separately?

I received the NI bill, but not the Income Tax one yet. Did you receive the latter one first?

[jimmyoyang]

Hey everyone, it's been a while. As predicted, like everyone else, I've just received an avalanche of notices to myself personally (for NIC only) and as well as to my limited company. No surprise that it was sent a couple of weeks before April 5th.

The best judgement determined figures actually closely matches one of my earlier calculations, which was on trading profits. It is about 1% off what I had worked out so I figure this is how they came to this figure, which is based on the business's net profit rather than gross. I don't think it is based on how much I actually took out (through dividends and salary) as those figures are way off what they have concluded.

So, I think they made these assessments after I'd paid the 19% corporation tax, and thus started the analysis from there to give me the PAYE (individual years) and National Insurance contributions (they've added up all three years) estimate.

My real question is... I've been advised we cannot / should not be double taxed. We have all collectively paid our CT and DT for those years. However, it seems like HMRC's calculations are based on the net figure rather than the gross. Does that mean, in theory, we are not paying double tax then (so will not be given the CT refund)? Or am I missing something? I get that we can claim back the DT as this would be void on paper since the entire net figure will be treated as personal income.

Or... if we do claim back CT. Would the calculations not be based on gross? Or indeed, what we took out of the business during those three years?

In a nutshell, I am just trying to determine how much I actually owe at this point (minus the interest) whilst taking into consideration that we could claim back on CT and DT already paid. Because, if we were able to claim back on what tax we've already paid then the figure I would owe would be in the region of the NIC figure I've been given thus far. Which, in the worst-case scenario, is just about manageable. BUT... if it is the entirety (PAYE and NIC) then I am f*cked.

Cheers.

[Lotok]

My understanding is you will need to claim back CT however there is a limit to how far back you can go, which causes some issues. I know DK group put in conditional claims for CT so the claim is in on time.