Churchill Knight & Boox clients being investigated as Managed Service Companies

[DealorNoDeal]

TBH If I were offered an 'outside' gig now I would still use a brolly. My old Ltd company is closed and I won't be opening up a new one. Simply not worth the risk any more. This MSC scandal is a total and utter disgrace and HMRC should be hanging its head in shame. Its worthy of going on Panaroma. Basically, they can massage so-called law any way they deem fit in order to get their money and make many honest people's lives a misery for years. Their scare tactics have beaten me but it's still absolutely shocking. I would imagine many online accountants will close because of this and we will be in the land of using our own spreadsheets all over again. So much for innovation.

I've been out of contracting for a long time but if I was ever to go back, I'd do the same thing and use a brolly.

To "avoid" tax, I'd max out pension contributions and possibly consider VCT/EIS/SEIS.

https://www.wealthclub.co.uk/article...s-eis-and-seis

"If you’ve used up your ISA and pension contributions allowances, you may be looking towards other tax-efficient ways to invest your money..."

[deuce]

I just dumped my accountant for a three man band a mile from my house. I suggest you all do the same (although maybe pick your own).

That's wise. I actually had a meeting with a local one this morning as well.

[antuk]

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.

Hmm I didnt take 50% income from dividends, and yet ive not been released. Should I be chasing WTT/HMRC?

[jamesbrown]

Hmm I didnt take 50% income from dividends, and yet ive not been released. Should I be chasing WTT/HMRC?

Including salary?

Sure, speak to WTT, especially if it's far below 50% of the invoiced amount (ex VAT).

[Fred Bloggs]

TBH If I were offered an 'outside' gig now I would still use a brolly. My old Ltd company is closed and I won't be opening up a new one. Simply not worth the risk any more. This MSC scandal is a total and utter disgrace and HMRC should be hanging its head in shame. Its worthy of going on Panaroma. Basically, they can massage so-called law any way they deem fit in order to get their money and make many honest people's lives a misery for years. Their scare tactics have beaten me but it's still absolutely shocking. I would imagine many online accountants will close because of this and we will be in the land of using our own spreadsheets all over again. So much for innovation.

Understood. But there's outside IR35 jobs. And then there's the really outside IR35 jobs. And nobody who does DIY book keeping is ever going to be an MSC. No matter how hard Hector huffs and puffs about it.

And accountants - I have been wondering what, if anything, the accountancy professional bodies have been doing about the MSC legislation stretch. Having said that, I have no idea if CK and boox are actually professionally accredited accountancy firms. You don't need to be to trade as an accountant.

[Anvipa]

Hmm I didnt take 50% income from dividends, and yet ive not been released. Should I be chasing WTT/HMRC?

I was told you also need to take into account expenses you paid yourself (not to 3rd parties) in the tax year- this needs to be added to dividends and salary. So basically, salary+dividends+expenses paid to yourself/revenue=%. If it is below 50%, then you should be OK to be outside of scope

[Anvipa]

TBH If I were offered an 'outside' gig now I would still use a brolly. My old Ltd company is closed and I won't be opening up a new one. Simply not worth the risk any more. This MSC scandal is a total and utter disgrace and HMRC should be hanging its head in shame. Its worthy of going on Panaroma. Basically, they can massage so-called law any way they deem fit in order to get their money and make many honest people's lives a misery for years. Their scare tactics have beaten me but it's still absolutely shocking. I would imagine many online accountants will close because of this and we will be in the land of using our own spreadsheets all over again. So much for innovation.

If anyone is going on Panorama with it, I am in

[GregRickshaw]

Hmm I didnt take 50% income from dividends, and yet ive not been released. Should I be chasing WTT/HMRC?

Why have WTT not picked it up, is what you should be asking (as well as chasing?) Their webinar was very bold about getting cases thrown out.

If you have this situation your specialists should be pro-active on this. What are all the 'experts' doing? Other than it seems waiting.

[Fred Bloggs]

Why have WTT not picked it up, is what you should be asking (as well as chasing?) Their webinar was very bold about getting cases thrown out.

If you have this situation your specialists should be pro-active on this. What are all the 'experts' doing? Other than it seems waiting.

Waiting and collecting money? In their interest to make things move as slowly as possible.

[Guy Incognito]

I moved to Gorilla Accounting, some people recommended them in this thread. Gorilla seem to think they would not be deemed MSCP but who knows at this point.

But why risk it?