Churchill Knight & Boox clients being investigated as Managed Service Companies

[Guy Incognito]

Compound interest is a b1tch.

[jamesbrown]

Compound interest is a b1tch.

You only get simple interest on tax liabilities, not compound. Still, it mounts up over several years.

[Guy Incognito]

Well I learnt something today!

[GregRickshaw]

The latest letter I received from HMRC includes Tax + Class 1 NIC for the 3 years + Interest.

It's a total joke. They're asking for 100K when I've already paid 119K?

You should also be able to claim back the Employers NIC you have already paid, unless HMRC have already taken that off your bill (I highly doubt it).

[hgllgh]

So HMRC said... “The MSC rules prevent an intermediary company setting up a structure that facilitates tax avoidance.”

Setting aside the debate about what it was that CK/Boox did that facilitated tax avoidance (haven't seen anything specific as yet), if I now go down the usual route of selecting one of the usual suspect contractor accountancies and asking them to setup a LtdCo for me (which I may well be doing soon), even though I direct them as to the salary to pay etc, I could be opening myself up to investigation if hector 'wins' against either CK or Boox?

[mogga71]

So HMRC said... “The MSC rules prevent an intermediary company setting up a structure that facilitates tax avoidance.”

Setting aside the debate about what it was that CK/Boox did that facilitated tax avoidance (haven't seen anything specific as yet), if I now go down the usual route of selecting one of the usual suspect contractor accountancies and asking them to setup a LtdCo for me (which I may well be doing soon), even though I direct them as to the salary to pay etc, I could be opening myself up to investigation if hector 'wins' against either CK or Boox?

Basically yes. If you do want to go down the 'outside' route I would use one of the many services to set up a new company but then ensure that I use a local accountant with no real online presence.

[Fred Bloggs]

So HMRC said... “The MSC rules prevent an intermediary company setting up a structure that facilitates tax avoidance.”

Setting aside the debate about what it was that CK/Boox did that facilitated tax avoidance (haven't seen anything specific as yet), if I now go down the usual route of selecting one of the usual suspect contractor accountancies and asking them to setup a LtdCo for me (which I may well be doing soon), even though I direct them as to the salary to pay etc, I could be opening myself up to investigation if hector 'wins' against either CK or Boox?

Don't bother using a third party to set up a new limited company. Go straight to Companies House website and do it there. It's simple, it's cheap and it's quick.

[GregRickshaw]

Don't bother using a third party to set up a new limited company. Go straight to Companies House website and do it there. It's simple, it's cheap and it's quick.

This... and for those of you still involved in this, have proof you did this and not CK or Boox.

[hgllgh]

Don't bother using a third party to set up a new limited company. Go straight to Companies House website and do it there. It's simple, it's cheap and it's quick.

.... and then just use a local accountancy with no real online presence?

[Fred Bloggs]

.... and then just use a local accountancy with no real online presence?

I'm not sure an accountant having a website is going to make a jot of difference to anything. But yes, I think you're on the right track. Personally, I would make using FreeAgent a priority to do as much as I could myself and engage an accountant for one off tasks as required.

FreeAgent can be had free of charge with NatWest group business bank accounts. HTH.