Churchill Knight & Boox clients being investigated as Managed Service Companies

[GregRickshaw]

Are you really going to do that for the next N years though, plus when the NI demands come through? There is nothing wrong with making the payments on account if you have the money, I suppose, but the recent demands are just the tip of the iceberg - these will end up being much larger amounts. Also, unless you've left CK/Boox, the risk is ongoing.

I'm not going to be able to because I can't possibly afford it if it comes for all the years up to now, not in this lifetime anyway.

Ditched CK but damage is done. I will need an accountant for the year end and VAT (as I did with CK) so if HMRC eventually come after the one man bands, the high street stores then I will get caught again.

I loved my contracting life but now regret every day I was a contractor.

[mogga71]

I'm not going to be able to because I can't possibly afford it if it comes for all the years up to now, not in this lifetime anyway.

Ditched CK but damage is done. I will need an accountant for the year end and VAT (as I did with CK) so if HMRC eventually come after the one man bands, the high street stores then I will get caught again.

I loved my contracting life but now regret every day I was a contractor.

So basically, what we are saying is that any contractor who has used an online accountant (which has a web portal) and has at some point paid a monthly fee to them, could be getting a letter from HMRC over the next few years? That is totally insane and seems to be an extended witchhunt against contractors.

Quite frankly I am amazed that this is not front-page news on every Contractor related website every day. It has the potential to destroy many people's lives.

[GregRickshaw]

So basically, what we are saying is that any contractor who has used an online accountant (which has a web portal) and has at some point paid a monthly fee to them, could be getting a letter from HMRC over the next few years? That is totally insane and seems to be an extended witchhunt against contractors.

Quite frankly I am amazed that this is not front-page news on every Contractor related website every day. It has the potential to destroy many people's lives.

Initially it did make front page news, including the FT however as with everything people get bored very quickly. Also where are we going to get any sympathy/support from?, the rest of the working world see us as a bunch of tax dodgers, and probably are please we are getting our comeuppance.

As David Kirk and someone on this forum said the only way to stop this is to get parliamentary support and this will need help from the various accountancy bodies.

Lives are going to be destroyed for sure but at the end of the day it is only money life needs to go on.

[eek]

So basically, what we are saying is that any contractor who has used an online accountant (which has a web portal) and has at some point paid a monthly fee to them, could be getting a letter from HMRC over the next few years? That is totally insane and seems to be an extended witchhunt against contractors.

Quite frankly I am amazed that this is not front-page news on every Contractor related website every day. It has the potential to destroy many people's lives.

1) Any contractor who used an online accountant who provided their own custom portal - remember it's going to be very hard for HMRC to extend this logic to FreeAgent / Sage.

2) it's 2 months old news and the news cycle doesn't work like that - even the Ukraine isn't the first news item every day.

And the reason I posted this is because InnoAccounts are doing another day of we have a lovely web portal on linkedIn today - you may have but personally a custom portal is a stupid idea...

[Lance]

has anyone who has received this letter been in contact with IPSE/FSB or other legal help?
And if so what has been said?

[rdw1970]

So basically, what we are saying is that any contractor who has used an online accountant (which has a web portal) and has at some point paid a monthly fee to them, could be getting a letter from HMRC over the next few years? That is totally insane and seems to be an extended witchhunt against contractors.

Quite frankly I am amazed that this is not front-page news on every Contractor related website every day. It has the potential to destroy many people's lives.

The issue isn't paying the monthly fee itself, it's still paying a fee regardless if you're working or not. Same if your company is dormant and you pay a smaller fee to keep the same accountants. Hector says this meets one of the 5 tests to determine if your accountant in an MSCP - "(a) benefits financially on an ongoing basis from the provision of the services of the individual"

This is the Test David Kirk says is the most problematic one and doesn't think the other 2 tests (which Hector says apply to CK and Boox) will stand up in court.

These were:-
(c) influences or controls the way in which payments to the individual (or associates of the individual) are made.
(d) influences or controls the company’s finances or any of its activities

Totally agree CK and Boox should seek support from the other main players and start applying some political pressure on Hector.

[Guy Incognito]

still paying a fee regardless if you're working or not.

You would still pay a fee for end of year accounts even if you only worked the first half of the year. Fee - but not working.

If you are not working then the fee is not paid from the services of the individual!

Anyway I think (a) is absurd but can't argue against something that to me is illogical.

[mogga71]

1) Any contractor who used an online accountant who provided their own custom portal - remember it's going to be very hard for HMRC to extend this logic to FreeAgent / Sage.

2) it's 2 months old news and the news cycle doesn't work like that - even the Ukraine isn't the first news item every day.

And the reason I posted this is because InnoAccounts are doing another day of we have a lovely web portal on linkedIn today - you may have but personally a custom portal is a stupid idea...

Sorry eek ... do you mean InniAccounts as opposed to InnoAccounts? ... I used InniAccounts a few years back ..... which could come back to bite me.

[eek]

Sorry eek ... do you mean InniAccounts as opposed to InnoAccounts? ... I used InniAccounts a few years back ..... which could come back to bite me.

Yep, InniAccounts - I always get their name wrong..

[Guy Incognito]

Did you contact them to get this info or did they send an update out that I've not seen?
I've not heard anything from Boox since the initial emails from Chris Clark were forwarded to me on 4th April.

An email sent on Monday 16 May