Churchill Knight & Boox clients being investigated as Managed Service Companies

[Guy Incognito]

Never checked my junk mail so many times in one week. How much is a phone auto dialler machine?

[GregRickshaw]

Nice one HMRC, tell us 3 days before the deadline we have 3 days to get our corporation Tax returns claims in, or tough luck.

FFS another night of digging out paperwork and frantic filling in of forms.

[frz78]

i think yiou just needs the CT values and the overall letter about it

[rdw1970]

Nice one HMRC, tell us 3 days before the deadline we have 3 days to get our corporation Tax returns claims in, or tough luck.

FFS another night of digging out paperwork and frantic filling in of forms.

How did they contact you re: this? David Kirk said its likely HMRC will accept late conditional claims. My appeal still hasn't been acknowledged.

[GregRickshaw]

How did they contact you re: this? David Kirk said its likely HMRC will accept late conditional claims. My appeal still hasn't been acknowledged.

CK posted on their support website.

Since spoken to David and he is going to try to get HMRC to accept late claims, given as the notices came out in an unreasonable timescale for us to re-act.

He (David) is of the opinion HMRC will accept late claims

Personally, not trusting anything HMRC say ever is the way to go

[Hareforthebear]

Regarding the CT, am I right in thinking we would be claiming some back as if the distributions were paid as salary then that would be an expense and therefore reduce the CT?

If that is actually the case then between that and tax paid via self assessment, i feel like HMRC might actually owe me money. (Apart from the NI). Could that even be possible or have I got this massively wrong?

[Guy Incognito]

Regarding the CT, am I right in thinking we would be claiming some back as if the distributions were paid as salary then that would be an expense and therefore reduce the CT?

If that is actually the case then between that and tax paid via self assessment, i feel like HMRC might actually owe me money. (Apart from the NI). Could that even be possible or have I got this massively wrong?

If this is the case then it seems unlikely that they could prove 61 (1) (b)

Meaning of “managed service company”

(1)A company is a “managed service company” if—
...
(b)payments are made (directly or indirectly) to the individual (or associates of the individual) of an amount equal to the greater part or all of the consideration for the provision of the services,

[Hareforthebear]

(b)payments are made (directly or indirectly) to the individual (or associates of the individual) of an amount equal to the greater part or all of the consideration for the provision of the services,

I take that to mean I have received personally more than half of what my company invoiced, which would be true. I have just had to pay a chunk of it I n self assessment. But no surprise if my interpretation is wrong it’s all twisting my melon a bit tbh

[jamesbrown]

I take that to mean I have received personally more than half of what my company invoiced, which would be true. I have just had to pay a chunk of it I n self assessment. But no surprise if my interpretation is wrong it’s all twisting my melon a bit tbh

I think your interpretation is correct. For anyone that paid out a smaller fraction in salary/dividends, which is probably quite a few people, it should be a fairly straightforward task to demonstrate that 61B (1) (b) does not apply and hence the MSC legislation does not apply.

Regarding taxes owed - as I understand it, HMRC has not yet sent demands for ErNI and EeNI which is, of course, the main chunk of tax in question for any deemed payment scenario.

[Guy Incognito]

I can't remember if any of the webinars said if tax relief on personal pension payments can be claimed if they were gross payments from your business account.

David Kirk told me they can. WTT told me they can't. The HMRC handbook seems to say they can. The HMRC guidance notes seem to say they can't.