Churchill Knight & Boox clients being investigated as Managed Service Companies

[tenten]

Simply because the more you read into companies like CK and their evolving status, they don't seem to be 'accountants' at least not in the true professional sense as in chartered. Boox clearly state they are chartered whereas CK do not. I liken CK to more like very sophisticated tech-savy bookkeepers, though I suspect the line between the two is very thin.

Possibly. But they sold you a product that was primarily accountancy services - there is no way you could have known the explicit accountancy exemption would not apply (and that is yet to be proven). I would be staggered if they could convince anyone that you were negligent or deliberate swicking the tax man to allow them to go back more than 4 years.

Nowhere in CK's response have they pushed the 'exemption' card, maybe they are keeping it as their ace/joker.

I am surprised at that. Perhaps they have only responded to the precise points raised against them?

[GregRickshaw]

Possibly. But they sold you a product that was primarily accountancy services - there is no way you could have known the explicit accountancy exemption would not apply (and that is yet to be proven). I would be staggered if they could convince anyone that you were negligent or deliberate swicking the tax man.

Thanks tt, this is what hurts so much if I am honest. After my dalliance in tax avoidance (I was naive and stupid with that). So I really thought I was doing the right thing by going LTD and with a 'respected' FCSA company - I mean what could go wrong? Ironically I went LTD as a certain gigantic television corporation would only accept LTD!

I am surprised at that. Perhaps they have only responded to the precise points raised against them?

Yes tt I hope/believe they have done this and they have a bunch of 'other ammunition' to strengthen their case later. Appreciate your support.

[Peoplesoft bloke]

I'm posting this for information - I have no axe to grind and I'm not peddling anything for anyone (I am thankfully not affected at present although the accountant I used prior to closing my Ltd looks like a potential target)

https://www.contractorcalculator.co....ors_group.aspx

[eek]

I'm posting this for information - I have no axe to grind and I'm not peddling anything for anyone (I am thankfully not affected at present although the accountant I used prior to closing my Ltd looks like a potential target)

https://www.contractorcalculator.co....ors_group.aspx

So I will repeat my advice from earlier.

Get your appeal letter in. Once you've done that you are better to pay money on account rather than waste money on a monthly fee because if you are not immediately involved its going to be years before anything that effects you will occur.

Remember Mr Chaplin needs a new money cow and the Big Group did wonders for WTT.

And I love to know what this line is based on

• Additional tax bills are likely to be 15%+ of the revenue already earnt.

Because unless that's a penalty on top (and there shouldn't be) it's going to be (sadly) way more than 15%...

[Daggster]

Hi all, I'm new here but in the Boox mess , "luckily" if you can say that, I swiched to permie a while back so at the moment there should only be 1,5 years of buying back, but still...what a tulipstorm...
I have a question for the more knowlegeable ppl in here, the ltd is on a previously rented place and I never swiched the address because the ltd should have been dissolved before I moved, but it seems it has not... so am now in a picke ...not sure if the current occupiers will keep the letter if I do receive it or just chug it in the bin... I'm planning to go and ask today but if I can't get hold of the letter is it wise to call HMRC to ask to send it via email? now? or should I wait and do it after 5 april in case the letter was never sent in the first place? (boox did email me about it and advised to appeal but they don't seem to have the case number at the moment)

Thank you for all the info in here, it's really helpful to stay on top of this and it helps more or less with the anxyiety as well.

[GregRickshaw]

Hi all, I'm new here but in the Boox mess , "luckily" if you can say that, I swiched to permie a while back so at the moment there should only be 1,5 years of buying back, but still...what a tulipstorm...
I have a question for the more knowlegeable ppl in here, the ltd is on a previously rented place and I never swiched the address because the ltd should have been dissolved before I moved, but it seems it has not... so am now in a picke ...not sure if the current occupiers will keep the letter if I do receive it or just chug it in the bin... I'm planning to go and ask today but if I can't get hold of the letter is it wise to call HMRC to ask to send it via email? now? or should I wait and do it after 5 april in case the letter was never sent in the first place? (boox did email me about it and advised to appeal but they don't seem to have the case number at the moment)

Thank you for all the info in here, it's really helpful to stay on top of this and it helps more or less with the anxyiety as well.

As regarding the premises, I too had this problem, HMRC stance is clear you have 30 days (to appeal) from when they issued the Determination letter NOT when you received it.

The current suggestion is to contact them via email as soon as you can.

[PurelyBlue]

IPSE has posted an article about this on their blog. It says "IPSE is aware that at least two accountancy services providers have recently become subject to an investigation by HMRC under the scope of Managed Service Company legislation, related to the tax year 2017-18."

So these determination letters only relate to 2017/2018 tax year?

Also, what happens if the determination letter from HMRC is lost in the post (e.g. sent to the wrong address, as unfortunately sometimes happens)?

[GregRickshaw]

IPSE has posted an article about this on their blog. It says "IPSE is aware that at least two accountancy services providers have recently become subject to an investigation by HMRC under the scope of Managed Service Company legislation, related to the tax year 2017-18."

So these determination letters only relate to 2017/2018 tax year?

Also, what happens if the determination letter from HMRC is lost in the post (e.g. sent to the wrong address, as unfortunately sometimes happens)?

So far yes only that year.

Pure speculation about why they have started now (this is the last year which isn't time barred btw - meaning for now they can't reach back any further)

There are rumours the investigations started around three years ago. Hence my underlying confidence in HEctor's chance because they could have started this any time after say one or two years of companies continuing to break the law and provide MSC but they waited until now (potentially losing years of extra revenue).

So around 2012 could have been a reasonable time they could have started this and still get considerable revenue back. Which incidentally is when CK changed how they worked (almost overnight). Maybe they have been working on this since 2012, no one knows.

As to the letter thing, Hector are being quite firm at the moment on the delivered or not status. You have 30 days to appeal from when Hector issued the determination, NOT when you may have received it.

They have opened up email channels for you to chase. Which puts you in a fairly awkward dilemma (chase and risk alerting or don't chase and risk all monies being payable immediately).

Given Hector's record it's possible some individuals have been missed, not through any logical parameter, but just missed.

[eek]

WTT are running a webinar next Thursday - details at Post | Feed | LinkedIn

[Daggster]

They have opened up email channels for you to chase. Which puts you in a fairly awkward dilemma (chase and risk alerting or don't chase and risk all monies being payable immediately).

Given Hector's record it's possible some individuals have been missed, not through any logical parameter, but just missed.

Do you mind sharing that email address , I can't find anything but phone numbers on HEctor's page.