Churchill Knight & Boox clients being investigated as Managed Service Companies

[antuk]

Probably not - if paid directly.

On the other hand you will need to include any payments (salaries, dividends etc) paid to a wife, partner etc

Including expenses in the calc is messy, am still under 50% but the number is higher as I had a lot of re-charged expenses to the client for client travel. These would have been expenses if I was perm employee too so it seems a tad unfair to include them if the basis is perms cant claim expenses.

[Scanti]

Including expenses in the calc is messy, am still under 50% but the number is higher as I had a lot of re-charged expenses to the client for client travel. These would have been expenses if I was perm employee too so it seems a tad unfair to include them if the basis is perms cant claim expenses.

Same here, also only got paid when worked (No sick or Holiday pay)
Feeling totally shafted but hey ho

[jamesbrown]

Including expenses in the calc is messy, am still under 50% but the number is higher as I had a lot of re-charged expenses to the client for client travel. These would have been expenses if I was perm employee too so it seems a tad unfair to include them if the basis is perms cant claim expenses.

Unless you're very far under 50%, it may be hard to get this closed down quickly, TBH (no inside knowledge, just my expectation, so speak to your adviser). I think it's more likely for a situation where you're invoicing, say, £200k+VAT and taking £50k in salary and dividends. If you're in the 40-50% range, I expect they'll want to taker a closer look. Still, it will matter eventually because it removes you from scope entirely (i.e., the test on the MSCP being involved with YourCo becomes irrelevant).

[nekro]

GregRickshaw I would like to say a massive thank you for your calm head on this.
I've just had the 2018/2019 and 2019/2080 and NIC arrive. I've made my 1st POA on the 2017/18 Reg 80 and I will do the others tomorrow and the day after. (daily limit exceeded)
I have a clearer head now I'm hoping that some of the DT and CT will be able to cover part of debt if we lose. Regarding the NIC I can't afford to make a POA nor did I get the options so the best I can hope for on that is a long TTP if we were to lose.

How did you make PoA? Did you use the safe code in your Reg 80 letter or did you contact HMRC and they gave you a different code?

[VSCodeDude]

How did you make PoA? Did you use the safe code in your Reg 80 letter or did you contact HMRC and they gave you a different code?

I used the safe code that I have on my reg 80. I’ve only done the first year for now. I’ll wait for my appeal 2018/2019 to be confirmed before I make more. I think that I’ll be in a good place if I can do all 3. With the CT and dividends tax refunds (fingers crossed) I think we can survive this without life changing consequences.
This is how I need to approach the situation to keep a calm head.

[GregRickshaw]

I used the safe code that I have on my reg 80. I’ve only done the first year for now. I’ll wait for my appeal 2018/2019 to be confirmed before I make more. I think that I’ll be in a good place if I can do all 3. With the CT and dividends tax refunds (fingers crossed) I think we can survive this without life changing consequences.
This is how I need to approach the situation to keep a calm head.

I agree if you can afford to put all three in the PoA, the bills aren't going to be life changing but a great coup for HMRC. I did a rough calculation based on what someone said elsewhere (not CUK).

Take the Div Tax, the CT tax reclaims from the PAYE then add the Employers NIC to that (taking off your own NIC) and * it by the 3 years and you have your rough liability.

Times that by the 2,000+ contractors involved and at a conservative estimate you are looking at around £73,000,000 into HMRC coffers, all of it coming from innocents and zero from the MSCP! Utter farce and an the whole a disgrace.

[GregRickshaw]

How did you make PoA? Did you use the safe code in your Reg 80 letter or did you contact HMRC and they gave you a different code?

I had my tax specialists contact them using the safe code and then got it confirmed in writing. Have been told again today the PoA amounts will not be returned until after the conclusion of the case, even though my 17/18 has been overturned/rescinded, I am still waiting about 18/19 19/20 so fair enough it can stay there.

[Guy Incognito]

Same here, also only got paid when worked (No sick or Holiday pay)
Feeling totally shafted but hey ho

The treatment of deemed employee has always been different from employee. You get all the downside and none of the upside because you are "trying to cheat the system".

[GregRickshaw]

Having seen the announcement yesterday from CK (re fund raiser) I would say HMRC just moved into a very (even stronger) strong position.

Pay on account
Put this to bed and go on with your lives
and possibly

1) say a little prayer HMRC don't double tax you
2) start buying premium bonds or (lottery tickets).

[Fred Bloggs]

Having seen the announcement yesterday from CK (re fund raiser) I would say HMRC just moved into a very (even stronger) strong position.

Pay on account
Put this to bed and go on with your lives
and possibly

1) say a little prayer HMRC don't double tax you
2) start buying premium bonds or (lottery tickets).

Why? Care to elaborate further? Thanks.