Churchill Knight & Boox clients being investigated as Managed Service Companies

[Fred Bloggs]

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?

I have used FA in the past. It was excellent software back then and it has got a lot better since then.

My last freelance consulting gig, I ran it through a package called QuickFile. Very similar to FA in many respects, though not as full featured. It is totally free, after all. There has to be limitations on free software.

I did DIY from company formation, operation, through to company strike off. The complete company life cycle. I did not use an accountant at all. But I did keep things as simple as possible to facilitate DIY. I coped just fine.

I am presently not working at all. By choice.

[jamesbrown]

You can actually get FA "free" FWIW; well, by opening a free Mettle account (among others, since it's owned by the Natwest Group afterall).

[jamesbrown]

One word of warning, though. You don't want to be jumping from the frying pan into the fire because the MSC risk is still pretty modest and hypothetical IMHO (even though it's much bigger than we imagined until recently) whereas mistakes with your bookkeeping are relatively more likely and potentially impactful. If you're going to do it completely on your own, then you'd probably want to have been contracting for a few years and be completely on top of your responsibilities. Otherwise, you'd better accept some extra risk w/r to the MSC legislation (it's almost laughable to write this) and use an accountant for ad-hoc/year-end reviews.

[Fred Bloggs]

One word of warning, though. You don't want to be jumping from the frying pan into the fire because the MSC risk is still pretty modest and hypothetical IMHO (even though it's much bigger than we imagined until recently) whereas mistakes with your bookkeeping are relatively more likely and potentially impactful. If you're going to do it completely on your own, then you'd probably want to have been contracting for a few years and be completely on top of your responsibilities. Otherwise, you'd better accept some extra risk w/r to the MSC legislation (it's almost laughable to write this) and use an accountant for ad-hoc/year-end reviews.

Indeed. In other threads discussing DIY, I have always maintained that a completely DIY approach is definitely not for everyone. I am still convinced that a client who has a plain vanilla book keeping service from their accountant will be shown not to be an MSC. The current challenge stretches the legislation far beyond what was intended.

[Fred Bloggs]

You can actually get FA "free" FWIW; well, by opening a free Mettle account (among others, since it's owned by the Natwest Group afterall).

Indeed you can. For reasons I won't expand on here, Mettle or Nat West wasn't an option for me when I set up my last company. Hence using QuickFile instead.

[eek]

Indeed. In other threads discussing DIY, I have always maintained that a completely DIY approach is definitely not for everyone. I am still convinced that a client who has a plain vanilla book keeping service from their accountant will be shown not to be an MSC. The current challenge stretches the legislation far beyond what was intended.

Likewise - I don't recommend anyone doing their own accounts. What I would suggest is FreeAgent and then an accountant to do the year end accounts.

Hint for any accountant reading this - the first firms to start advertising fixed prices services (not split into 12 monthly fees) are going to pick up a pile of work here...

[DealorNoDeal]

As a belt and braces, it might be be a good idea to steer clear of big accountancy firms that specialise in PSCs.

[eek]

As a belt and braces, it might be be a good idea to steer clear of big accountancy firms that specialise in PSCs.

I suspect the fact we are suggesting people purchase the services they need individually at the time they need them would be enough to make the big contractor accountancy firms unattractive (as their business model is based on monthly fees)

Thinking about those firms I have a completely different concern about the services many of those firms offer which I won't post here because that may (and would) give HMRC ideas....

[GregRickshaw]

Are HMRC using the MSC angle to avoid having to carry out individual IR35 investigations?

Yip

[Fred Bloggs]

As a belt and braces, it might be be a good idea to steer clear of big accountancy firms that specialise in PSCs.

I am not an expert in the accounting industry. But I should think that away from the sausage machine contractor firms, a generalist accounting firm won't as a rule offer monthly subscription plans? A sweet shop, joinery firm, haulage company etc... won't have a monthly subscription, will they? That fits what seems to be emerging as a sensible way forward from where we are today.