Originally posted by Chevalier
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Churchill Knight & Boox clients being investigated as Managed Service Companies
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Originally posted by enda1 View Post
It’s your last point that I believe I fall under. My company provides services to an end client abroad, so we spent a large amount of our time abroad in Italy and France. Not sure how they could fall under U.K. employment law…
thanks for your insight
You need to get a sit down with them.Comment
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Originally posted by GregRickshaw View Post
Then find someone to go to HMRC with those facts, as most on here have said they (HMRC) are not reading the appeals mainly because they have received around 2000 heavily templated letters.
You need to get a sit down with them.Public Service Posting by the BBC - Bloggs Bulls**t Corp.
Officially CUK certified - Thick as f**k.Comment
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Yes very true. Their operating model though may not fit MSC, sounds as though the company were a Managed Service ProviderComment
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Originally posted by GregRickshaw View PostYes very true. Their operating model though may not fit MSC, sounds as though the company were a Managed Service Provider
It is actually very easy to be tax resident in multiple jurisdictions. Personally, I have been tax resident in multiple jurisdictions at the same time. For a couple of years I was tax resident in three countries at the same time. And several years tax resident in two jurisdictions. It's extremely complex.Public Service Posting by the BBC - Bloggs Bulls**t Corp.
Officially CUK certified - Thick as f**k.Comment
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Good morning fellow acquaintances.
I've been spending this morning trying to work out my liability. I know there are many assumed methods, and more recently, I've been made aware of using the IR35 Calculator to get the closest liable figure. The 'DEEMED PAYMENT SPREADSHEET' can be found on the Gov.uk website: http://www.hmrc.gov.uk/gds/ir35/ir35.xlt
The determined PAYE I received matches the spreadsheet's outcome, so I imagine this is what they are using to determine our liability, whilst not using much else in their calculations at present (like how much tax we've already paid which ofc will need to be raised).
As follows (hoping this helps others or if this is incorrect, then also let me know) according to the spreadsheet calculator:
– Swivel down to the 2017/18 date
– Box A type in your turnover
– Box D will show the income (a+b+c) that will be apportioned between deemed payment and NIC's
– Box C will show the outstanding Employer's NICs
– Box N will show the deemed payment
I then typed the deemed payment into an online tax calculator (in this instance, Listentotaxman.com) for the outstanding year, and behold, the Total Tax Due reflects the Determined PAYE I received from them. In addition, the Employers NI on the calculator also reflects Box C (in the above IR35 spreadsheet provided by them). I then also extracted the figure of the Employee's NIC.
Lastly, I added the following:
– Outstanding PAYE + NICs (employee and employer) and then deducted this against what I paid for my Corporation Tax and Dividend Tax. The difference will be in theory what we owe.
This is probably my 100th calculation, but it's the one that closest matches what I have been served with so far. I am just hesitant paying £££ for someone to work out my liability when in due course, we will find out. But, for peace of mind, I believe the above will show the closest match.
Thoughts?
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Originally posted by jimmyoyang View PostThoughts?Comment
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Originally posted by jamesbrown View Post
Sounds about right. An inside IR35 calculator will provide a good idea of your liability because the deemed payment under Chapter 9 is effectively the same as Chapter 10 (not Chapter 8 where you still get 5% for expenses). Worst case scenario, add interest to that amount, unless you make a PoA, plus the cost of defending the case, I suppose. Best case scenario will be with PoA and CT and dividend taxes refunded. In the end, the CT and dividend taxes will almost certainly get refunded, even if it takes a tribunal judge to rule - but HMRC always plays hardball to begin with.
Interest rates
Just looking at interest rates on their website (https://www.gov.uk/government/public...interest-rates).
Will this be a Late payment or a Repayment? The difference in interest is quite significant! Between 3% and 0.5%!
IR35 calculator
As for the inside IR35 calculator... the one I downloaded from their website automatically calculates the 'less 5% of the amount to cover other unspecified expenses". So, the figure I ended up with (which also matches the determination I received) I would presume had the 5% expense allocated to it, as when I manually remove the 5% allowance I end up with a higher PAYE figure than what was presented to me.
NIC's Employee
Does anyone know if this will be something we are liable for (I EXPECT YES!!!)? Has anyone received a determination for this?Comment
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Originally posted by jimmyoyang View Post
Thanks.
Interest rates
Just looking at interest rates on their website (https://www.gov.uk/government/public...interest-rates).
Will this be a Late payment or a Repayment? The difference in interest is quite significant! Between 3% and 0.5%!
Originally posted by jimmyoyang View PostAs for the inside IR35 calculator... the one I downloaded from their website automatically calculates the 'less 5% of the amount to cover other unspecified expenses". So, the figure I ended up with (which also matches the determination I received) I would presume had the 5% expense allocated to it, as when I manually remove the 5% allowance I end up with a higher PAYE figure than what was presented to me.
Originally posted by jimmyoyang View PostDoes anyone know if this will be something we are liable for (I EXPECT YES!!!)? Has anyone received a determination for this?
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So assuming HMRC win this - then by the nature of it being deemed payment, the money is subject to income tax and not corp tax. However we have not had the benefit of this money as it sits in the company accounts. So does that mean by paying this bill you can also take out the deemed payment from the company (or any amount up to it) to you personal accounts tax free?Comment
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