Churchill Knight & Boox clients being investigated as Managed Service Companies

[eek]

i would definitey say there is overlap on areas here which have been discussed - not just one thing about invoices....

See my edit - there actually isn't because you know FreeAgent will have been very careful here. That list has gone past a lawyer.

[frz78]

ah can see the edit. Thanks. This entirely mirrors my setup with CK tbh.

[jamesbrown]

Like I said before, there is no piece of software on its own that will eliminate risk. If you have an accountant, you are in the "at risk" category, at least in terms of HMRC's view, which will be challenged and their view will probably be found wrong. If you want zero risk and are going the FA or Xero (or similar) route, make sure you do the books yourself or perhaps have an accountant check your annual returns on an ad-hoc basis. For example, it is perfectly possible that an accounting package, such as FA or Xero, could be used in a controlling way by an accountant, since all of these book keeping packages provide options w/r to access levels and FA is not responsible for how accountants operate w/r to their clients.

[Peoplesoft bloke]

Is there a monthly fee?

From the Computer Weekly Article -

In its March 2022 letter to contractors, HMRC claims its review of Churchill Knight’s business revealed that the firm meets three of the five qualifying criteria needed for it to be classified as an MSCP.

In a copy of the letter, seen by Computer Weekly, HMRC said the fact Churchill Knight charges contractors an annual fee that is broken down and collected over 12 months marks it out as an MSCP.

[jamesbrown]

Is there a monthly fee?

For what?

[eek]

Is there a monthly fee?

From the Computer Weekly Article -

There is a large amount of HMRC trying to push points here - I don't think the issue HMRC has was the monthly fee, it was the fact the fee was reduced when the company wasn't receiving money - making extra profit based on the company's earnings (which CK do in reverse) was something highlighted in the previous tribunals.

What HMRC are doing here is trying to push it further and trying to get any monthly fee treated as profit. I think various people on here have suggested that the only safe approach going forward will be to pay your accountant for the work they do at the time they do it.

[frz78]

i guess the last few posts kinda illustrate the state of this situation....

[frz78]

also thanks for sharing the knowledge and viewpoints - appreciated

[Fred Bloggs]

Bear in mind that HMRCs own Making Tax Digital programme now requires software in order for a company to fulfil it's legal reporting obligations. To me, it's a minimalist system that you want. I think FreeAgent fits the bill. It's difficult for me to imagine a company financial management system that fulfils legal obligations whilst being even less minimal in terms of control. To that end, I would be avoiding any bolt on hand holding service from FreeAgent or anyone else. Run payroll, report VAT, do everything yourself. FA is a great tool for this. Use an accountant at year end if you need to.

[frz78]

Bear in mind that HMRCs own Making Tax Digital programme now requires software in order for a company to fulfil it's legal reporting obligations. To me, it's a minimalist system that you want. I think FreeAgent fits the bill. It's difficult for me to imagine a company financial management system that fulfils legal obligations whilst being even less minimal in terms of control. To that end, I would be avoiding any bolt on hand holding service from FreeAgent or anyone else. Run payroll, report VAT, do everything yourself. FA is a great tool for this. Use an accountant at year end if you need to.

yeah i think thats what i am going to do. And yes the MTD thing seems like this is the logical path to go... seems like the only option to cover my arse.. you use FA yourself?