Churchill Knight & Boox clients being investigated as Managed Service Companies

[Sijo]

I believe most similar accountant services have similar portals. I never knew we could interpret getting a tax advice to influence and control. I have used Boox just to make sure that my accounts are correct and I shouldn't get in to any tax issues. And here I am scaring at the hefty determination note from HMRC.

[tenten]

Sadly I can't see that argument standing up - at the end of a day all a computer does is generate a result based on inputs - no human touch is involved there.

And looking at the upper tax tribunal judgment 2 (out of the 5 people) were shown to have chosen what to do themselves and that wasn't enough for them to escape...

Yup, you may will be right - an algorithmic portal could arguably "influence" a directors decisions. In the round, I think evidence of decision making around, and contrary to, the portal outputs could be a useful counter.

Two of the appellants in the CBS case were indeed proven to have chosen their salary level. But like the other three appellants, they "ceded control" of all the dividend decisions and related admin to CBS. It reads like the court were of the view that it was clear case of control rather than influence - I doubt many would disagree. Much like the untested accountancy exemption, the boundaries for influences will need tested too.

[GregRickshaw]

I have now listened to WTT's webinar in full. I was very informed and very impressed by them actually.
Many things I did not realise we can do individually as part of the appeal so I will be doing all of the things they mentioned. Which is pretty much everything we have been talking about on this thread.

Own bank
Own payments/dividends
Own Invoices
Own Expenses (through CK's portal though)
Multiple clients during this period etc.,
Forced to go LTD by BBC

I feel a lot better now actually but realise this is a tough fight, but simply didn't realise we all can individually point out to HMRC how they are wrong and they can't tar us all with the same brush

[SwissSaffa]

they can't tar us all with the same brush

I couldn't agree more. I just hope that word gets out to all the victims of this shameless money grab before it's too late. I think Boox and CK are working hard to make sure everyone is aware and that they are lodging appeals asap.

It's actually so shocking that HMRC would try to destroy livelihoods like this and also scare away talent. Why can't HMRC go after the super rich billionaires? So much bang for your buck. I left the UK permanently because of IR35, I can imagine hundreds of other people did the same thing and now with this MSC craziness more people will leave. I predict a huge brain drain.

[GregRickshaw]

I couldn't agree more. I just hope that word gets out to all the victims of this shameless money grab before it's too late. I think Boox and CK are working hard to make sure everyone is aware and that they are lodging appeals asap.

It's actually so shocking that HMRC would try to destroy livelihoods like this and also scare away talent. Why can't HMRC go after the super rich billionaires? So much bang for your buck. I left the UK permanently because of IR35, I can imagine hundreds of other people did the same thing and now with this MSC craziness more people will leave. I predict a huge brain drain.

I envy you my friend I had the opportunity to leave the UK too but family loyalties kept me here.

Lets' keep sharing and keep pushing this back to HMRC

[SwissSaffa]

I envy you my friend I had the opportunity to leave the UK too but family loyalties kept me here.

Lets' keep sharing and keep pushing this back to HMRC

I can imagine. I know many people who just cannot uproot their families even though some places in Europe have a much better quality of life.

Absolutely will fight. I am about to engage a very experienced organisation of lawyers to fight this tooth and nail (is that the saying).

I see my direct tweet to Rishy about his wife made a difference ?.

[GregRickshaw]

Great article from Computer Weekly

https://www.computerweekly.com/news/...XIC7UnP74XytDM

Maybe this will have a similar affect for us as the media shaming of the Chancellor's wife did.

[Fred Bloggs]

Great article from Computer Weekly

https://www.computerweekly.com/news/...XIC7UnP74XytDM

Maybe this will have a similar affect for us as the media shaming of the Chancellor's wife did.

Thanks, indeed worth a read. Hopefully it gets the news out to a wider audience.

[cojak]

I’ll amend the title to this thread as well.

As I have read on here that CK & Boox clients have received a letter from HMRC for payment of tax. I am looking for some guidance.

I like others took a contract with an accounting firm to ensure that my Ltd company remained compliant. Now I am looking at demand from HMRC for 25K.

Where is the accountability and responsibility lay here? Surely the accountants have responsibility?

Boox has sent out an appeal draft letter to submit yourself or Boox to submit. What is the correct approach or strategy for this? Has anyone sought legal advice from an expert tax law firm?

Boox say they are very confident that they will win the appeals, but that is all well and good until it comes down to it.

Any advice or help appreciated ensuring I have a strong appeals case

[cojak]

Ok Greg. This looks like a subset of ‘In Business on Your Own Account’.

While CK are looking like they’ve got questions to answer, it looks as if you have solid answers to those questions.

So organise your folder with EVERYTHING that shows that you are a businessman. Dig out all correspondence for organising your Ltd, Vat and everything else (digital and paper) that shows that you set up and run the LTd on your own. Make sure that those answers are given to your tax advisor and your MP.

Here are tips to show that you are outside IR35. https://www.contractoruk.com/private...side_ir35.html

And remember to put all of this evidence into your appeal to HMRC - you have 30 days from the date of the letter to return it.

View this as a form of IR35 investigation - HMRC are wrong in your circumstances and a good defence will get you out of this.

At the moment, this is the best that we can advise Andrew - we have no more information than you see in this thread.