Churchill Knight & Boox clients being investigated as Managed Service Companies

[tenten]

I'm afraid they should be, not because of the actual risk of the MSC legislation (IMHO), but because a lot of people will be leaving accountants.

Completely agree with this and it is the decision we took last week despite the very low/no risk view on this forum of our current accountancy arrangement - I'm not interested in rolling the dice. I felt bad having the conversation with our accountants, who have been excellent, but you have to do what you have to do. I expect that once the details of these MSC cases cuts through to the masses, there will be a fair amount of accountancy churn.

[Qdos Contractor]

We are naturally aware of this developing situation. We currently exclude MSC enquiries from our TEI and TLC policies (see exclusion general exclusion 13 for reference).

However, HMRC’s recent activity is unprecedented and we appreciate there are now numerous contractors seeking assistance. We are therefore committing to support any existing tax policyholders who have received an MSC letter from HMRC without charge while we review our policy wording.

Seb

[tenten]

Is it actually written in the (very) small print? What an awful turn of events on top of everything that's happening.

I think the letters to the CK/Boox clients were regulation 80's which I presume would be considered a PAYE dispute. The QDOS policy on PAYE says it covers a dispute: "following a compliance check or routine inspection undertaken by HMRC into the operation of PAYE".

However, the general exclusions include "Chapter 9, Part 2 and Section 688A of The Income Tax (Earnings and Pensions) Act 2003.".... which is the bit about MSCs and "recovering from other persons".

[DealorNoDeal]

From HMRC’s Letter, they are still ‘fact finding’ with Boox, so it is pretty poor that these have even been sent where they are not 100% sure of their stance (not surprising obviously but ridiculous nonetheless).

HMRC have a name for them, "protective assessments". Basically, issue any old cobblers before the time limit expires.

That's almost certainly why they won't let anyone settle at the moment. Because the whole thing is still half-baked.

[jamesbrown]

We are naturally aware of this developing situation. We currently exclude MSC enquiries from our TEI and TLC policies (see exclusion general exclusion 13 for reference).

However, HMRC’s recent activity is unprecedented and we appreciate there are now numerous contractors seeking assistance. We are therefore committing to support any existing tax policyholders who have received an MSC letter from HMRC without charge while we review our policy wording.

Seb

Fair enough, good call. Please report back on the outcome of your policy wording review because the main issue is obviously the ongoing support for those affected (several years down the line), not so much the drafting of the initial appeal latter, albeit very important/immediate.

[superdoodle]

We are naturally aware of this developing situation. We currently exclude MSC enquiries from our TEI and TLC policies (see exclusion general exclusion 13 for reference).

However, HMRC’s recent activity is unprecedented and we appreciate there are now numerous contractors seeking assistance. We are therefore committing to support any existing tax policyholders who have received an MSC letter from HMRC without charge while we review our policy wording.

Seb

Good to hear that, Seb. I have emailed yourselves but not heard anything back yet.

[Chevalier]

For those that have the time, this briefing document seems to have some detail on the intention of parliament

https://researchbriefings.files.parl...01/SN04301.pdf

Historically many Conservative MPs had concerns about the legislation at the time. If there are any constituents of Teresa Villiers embroiled in this (see pages 30-33), now might be a very good time to pay her a visit!!

[GregRickshaw]

Just for anecdotal information:

My Conservative MP is meeting with the treasury minister regarding this 'affair'

It's possibly nothing but at least it's something.

Hopefully wherever you all are and are affected your MP can do the same.

[Qdos Contractor]

Good to hear that, Seb. I have emailed yourselves but not heard anything back yet.

Could you send me a DM with your details and I'll ensure someone contacts you this afternoon?

[Peoplesoft bloke]

Array

For those that have the time, this briefing document seems to have some detail on the intention of parliament

https://researchbriefings.files.parl...01/SN04301.pdf

Historically many Conservative MPs had concerns about the legislation at the time. If there are any constituents of Teresa Villiers embroiled in this (see pages 30-33), now might be a very good time to pay her a visit!!

That's vey interesting - this leapt off the page

Managed Service Companies (MSCs): the company sells the worker’s services, but the worker has no control over the business.

If that was the target, HMRC can't shoot straight.