Churchill Knight & Boox clients being investigated as Managed Service Companies

[praxeologist]

If the contractor signs a standstill agreement, does it mean the NICs as stated by HMRC now are due regardless of the outcome of tribunals

or

Will they still recalculate what is due based on the outcome of tribunals, company and corporation tax paid etc.

ie. The NICs due could change or be zero based on potential tribunals, it just means that they can still pursue the contractor for NIC after 6 years (if it is subsequently determined that NIC is due)

Standstill allows HMRC to block the contractor from defending themselves by pointing out that NICs have a time limitation (normally 6 years unless fraud etc) during which their enquiry should have started or funds collected etc. Essentially you agree to freeze time for the purposes of collecting NICs.

It is outrageous that such a coerced agreement is admissible in court and that courts allow HMRC to lodge their NI claims and then immediately suspend them, preventing people from defending themselves and getting that off their mind. If I took someone to a court to pay me, surely I can't then tell the court "but I'll come back to this in 10 years time because I could potentially benefit from some other court cases in the meantime and my proof is too weak".

[SwissSaffa]

Standstill allows HMRC to block the contractor from defending themselves

As far as I understand this is not true.

I can still defend myself by going to tribunals etc. It is not an admission of guilt.

Can someome else please clarify that it simply means IF I lose I am still liable after the 6 years has passed.

[jamesbrown]

Can someome else please clarify that it simply means IF I lose I am still liable after the 6 years has passed.

Correct. Until there is a final outcome, there is no liability, but a liability will arise beyond the ordinary time limits with the standstill agreement.

[praxeologist]

As far as I understand this is not true.

I can still defend myself by going to tribunals etc. It is not an admission of guilt.

Can someome else please clarify that it simply means IF I lose I am still liable after the 6 years has passed.

It would be helpful if you quoted my entire claim - that you cannot use the limitation of time of 6 years to argue that NI demands should be vacated. I did not claim that Standstill agreement prevents us from defending ourselves.

[GregRickshaw]

Thank you so much for coming back on this. I asked HMRC to look into my case specifically so I could get some accurate figures. The net amount is less than 10% of what they were asking for. However, the interest is calculated on the gross amount so quite a big number. Also, they won't let me pay the net figure - I have to pay the full amount and claim back.
There is just no common sense here. Based on their own calculations, HMRC actually owed me money for one of the 3 years! It would be laughable if it wasn't so draining.
Thanks again for your response.

What you are dealing with there are the original PAYE figures which came around. Hence the wipe out and the 'HMRC owes me money' quotes. Most of this (PAYE liability claim) will hopefully be cleared with the CT and DT reclaims IF IF IF if HMRC decide not to double tax (would they even sink that low??? mmmmm). The liability we face is really the NIC focus on those figures

[GregRickshaw]

Of all the low down tricks HMRC have pulled over the years, the standstill agreement has to be the lowest of the low... lower than a snakes belly even!

[Guy Incognito]

Just received the brilliant news that HMRC have dropped one of my years.

This was just nine months after I sent them evidence that Boox were not my Accountants for that year.

[GregRickshaw]

Just received the brilliant news that HMRC have dropped one of my years.

This was just nine months after I sent them evidence that Boox were not my Accountants for that year.

Excellent news. Two of mine were dropped as previously stated, even though we are all sure even HMRC aren't stupid enough to take people to court who don't qualify, we really weren't that certain were we?

I haven't seen a penny of my PoA since they dropped mine, be interested to hear if you get yours back anytime soon, I suspect you (like me) are still involved.

[ritwolf]

Has there been any progress, or any specific dates that we can look forward to? I haven't heard from HMRC this year so far regarding the case...

[GregRickshaw]

'Expected' FTT late 2025 or early 2026. So basically dragging this thing out as long as possible HMRC? Lawyers? probably both ... no one would be surprised to see this run well into 2030.