Churchill Knight & Boox clients being investigated as Managed Service Companies

[eek]

Any advice or suggestions as to where I should move my company management too, what I mean by this is book keeping etc, Should I just move it to my accountancy firm that looks after my other company which is in a different industry. Oh dear my head is spinning.

What do you mean by company management - that's what you (as a director of the company) are supposed to be doing?

Invoices and such items should be being done by yourself - now you can use FreeAgent to create and send the invoices but if you don't want to be caught by the Managed Service Company legislation - you need to create and send those invoices yourself.

[jamesbrown]

I think also those who

• Didnt take over 50% company income as dividends

Makes sense. I'm not sure people fully appreciate this exclusion from the MSC legislation (Chapter 9). If you weren't extracting more than 50% of the company income, it cannot apply (61B (1) (b)). Of course, IR35 still applies (Chapter 10/11), but that is a separate question.

[GregRickshaw]

I understood that the companies released were those that either not clients of CK/Boox during FY 17/18 or were closed already. Was that the case with yours?

They haven't explained why as yet.

I didn't fit into the 50% or less though. I am awaiting the official you are off the hook and why. Not sure it will ever come.

I had three employees (4 with me) during the 17/18 year and two (3 with me) in 18/19. I was on my own in 19/20 and to be clear they have only removed us from the first determination (as I understand) I highly doubt the 18/19 will be sent though, I may yet get 19/20 determination. My company has been inactive since late 2019.

[Hareforthebear]

Makes sense. I'm not sure people fully appreciate this exclusion from the MSC legislation (Chapter 9). If you weren't extracting more than 50% of the company income, it cannot apply (61B (1) (b)). Of course, IR35 still applies (Chapter 10/11), but that is a separate question.

So basically if I had money boxed more and paid less tax than I paid, I would be off the hook for paying more tax. Bit of a kick in the nuts that.

[Hareforthebear]

They haven't explained why as yet.

I didn't fit into the 50% or less though. I am awaiting the official you are off the hook and why. Not sure it will ever come.

I had three employees (4 with me) during the 17/18 year and two (3 with me) in 18/19. I was on my own in 19/20 and to be clear they have only removed us from the first determination (as I understand) I highly doubt the 18/19 will be sent though, I may yet get 19/20 determination. My company has been inactive since late 2019.

Good stuff, hope you get some official confirmation. Nice to hear of some success.

[Fred Bloggs]

Any advice or suggestions as to where I should move my company management too, what I mean by this is book keeping etc, Should I just move it to my accountancy firm that looks after my other company which is in a different industry. Oh dear my head is spinning.

And then some people wonder why Hector is taking a close look.

That's being as polite as I possibly can be.

[Supergirl007]

And then some people wonder why Hector is taking a close look.

That's being as polite as I possibly can be.

No worries I am sure I am not explaining myself properly. Either way I am going get independent advice, and speak to HMRC about this whole cock up.

[southblue]

Have you guys just received a request for monies to help fight this case with Churchill Knight? I am so screwed. All I did was have them look after my invoicing and bookkeeping. They are not responsible for telling me how much I can earn or take or anything. They have always been my own choices.

Yes. I have.
But the 10% they are asking for is more than my (expected) total liability. I am hoping they have messed up calculations somewhere as they are saying my estimated liability for 2017/18 is over 10 times it initially was when I agreed to participate in the appeal.

win or lose, if their new calculations are correct, there is no way I can afford this - I wound down (or tried to) my company in 2018ish and there is no way I could be reasonably liable for the amount they claim in their email for 2017/18.

I am going to dig out the HMRC notice, but I’m 99% sure my figures are correct.

As a relatively small company, I only used CKA for convenience and advice. I did invoices myself and always specified that I didn’t want to participate in what was “legal” but what could also be seen as “moral” - Due to the contracts and customers I had at the time.

I’m totally tulipting myself now. I take heart in the fact that there surely must be a mix up in CKA calculations. The amount they say I’m liable for makes no sense - that is like a bizarre percentage of turnover and ( I’ll have to refer to records to check), but pretty much all profit declared that year.

In hindsight I should’ve just paid HMRC when they demanded it. It would’ve be difficult, but doable. If latest CKA estimates are correct, then accepting their “assistance” has bankrupted me.

[Fred Bloggs]

No worries I am sure I am not explaining myself properly. Either way I am going get independent advice, and speak to HMRC about this whole cock up.

Whatever you do, don't speak to anyone yourself at HMRC. If you say anything like you said before, you're going to irretrievably incriminate yourself as an MSC. By all means get professional advice and let them do the talking.

[southblue]

Apologies

II seem to be unable to edit my last post to correct spelling (probably as I am a new member).
hope you can interpret it