Originally posted by antuk
View Post
MPs are very good at cutting through HMRC intransigence.
-
If you want to try and get them to change their mind, ask your Member of Parliament to intervene on your behalf.
MPs are very good at cutting through HMRC intransigence.
Scoots still says that Apr 2020 didn't mark the start of a new stock bull market. -
PS. if you're 100% sure of your position, you could request a review by HMRC.
This is a statutory process. At the end of the review they either have to (a) withdraw their assessment or (b) uphold it.
DO NOT enter into this lightly though because if they do come back with (b) then you get 30 days to settle or appeal your case to the FTT.Scoots still says that Apr 2020 didn't mark the start of a new stock bull market.Comment
-
Good evening everyone,
Could you help me with something that has got me enquiring (again)? I've seen recent comments here regarding the 50% ruling (specifically, point B of Section 61B(1) which states "over half the payments received by the limited company for the services of the contractor were paid to them) and also to a certain extent, Point C "the amounts received by the contractor were greater than they would have been if all their income from the limited company were treated as employment income". Some of these opinions have differed, but I personally want to triple-check if I fall into all of HMRC's accusations.
I did ask my current accountants about this, but to be honest, they didn't want to know nor were very helpful. I also asked my Tax Specialists who were also idle on the subject matter. Everyone (my accountants and tax people) wants me to sit and wait... but I want to build arguments, cases etc. for the long run. At least be prepared.
So, my company year end is January 31st, and before, I was calculating my salary and dividends from April-April tax years as I think that was an easier figure to throw into the spreadsheet (rather than doing them between Jan to Jan to align with my company records). So, I've now recalculated that figure and literally added what was taken out of my business account between Jan-to-Jan, and that figure has come down significantly since I've been adding another three months Jan-Mar of outgoings in my last workings). I then added my expenses (which I am struggling to work out other than by adding everything up via bank statements), which is also where I need your opinion. I added accountancy fees, depreciation of property, subsistence and travel, IT and computing and other staff costs, and finally, have a whole number for that. My question is: is there a better way to work out expenses which are considered payouts to the contractor? As it feels like 'accountancy fees' shouldn't be considered?
Anyway, to conclude, based on the above (including every single expense including accountancy fees) and detracting it from the turnover, I have landed at 49%. It's close. It's sooo close. But, it is under the 'greater amount'. My last question is, have I missed anything as part of my calcs? (I've added every single expense, dividend and salary taken from Jan to Jan as part of my figures).Last edited by jimmyoyang; 30 January 2023, 18:01.Comment
-
One last one about challenging/querying, I wanted to write this separately to the last post as otherwise, it'll just drag!
Point A was another point I wanted to challenge from Section 61B(1). To jog everyone's memory it is "the business of the limited company consisted wholly or mainly of providing services to x contractor".
In 2018/19 and 2019/20 I hired one permanent staff member who I will be calling 'Y' to help me with the increased workload. As such, there are client contracts which overlap in date and are not possible to be completed by one individual since my job requires to be 'on-site'. In addition, these freelance contracts are addressed to 'Y' rather than to me (the director of the company). This should show the services provided by the limited company were not wholly me since I spread the workload, and did more management and client liaison. I have tons and tons of email proof, along with employment contracts that I wrote out for 'Y' when she signed up, and also there were contracts addressed to them from end clients.
Additional information, 'Y' later became my spouse, but during the first half of 2018/19 she was not and was simply just staff. Not sure if that muddies the water but unclear why it would... it's quite common for spouse partners to be running businesses together?
Is there an argument for me to be had here on the above? Basically, I see myself / company as more of a consulting company with a working team, I have since subcontracted work (years outside 18/19 and 19/20) in abundance, hired freelancers and will be expanding my team on payroll, this year.
Thank you in advance.Last edited by jimmyoyang; 30 January 2023, 17:57.Comment
-
jimmyoyang, I'm afraid you don't have a hope in hell of getting accurate answers to those questions here if the people you're paying for professional advice cannot answer them for you. Perhaps you should seek better advisors but, even then, there isn't much to go on beyond what is written in the legislation, the ESMs and case law. On the latter, you won't find much help because CBS (as the most prominent example) was straightforward in that regard.
FWIW, I don't think you have the remotest chance of arguing against the first condition:
Failing better advisors, you should probably listen to what "everyone" you've asked is saying, which is that you'll need to sit and wait (which doesn't mean not building a case, but it does mean that you cannot expect definitive answers).its business consists wholly or mainly of providing (directly or indirectly) the services of an individual to other personsComment
-
Hi Everyone,
I really would like to speak with someone regarding my case and the MSC investigation.
Do you perhaps know who I should speak with? Is it a tax solicitor? an accountant who specialises in these types of tax issues? I really have no idea so would appreciate it if you could guide me here.
Even better - if you could throw out some names who you would recommend I could speak with that would be really great.
Thank you.Comment
-
GregRickshaw - Do you or others on here know of any representative (tax specialist, lawyer, etc) that you would recommend to discuss options? I have heard "David Kirk" mentioned but have no idea how good he is. Thank you.Originally posted by GregRickshaw View PostComment
-
You could try Paul Mason at Markel Tax, for example (very good, in my experience).Originally posted by RightAngle View Post
I would personally steer clear of the more ambulance-chasey outfits that are routinely mentioned here.
But, regardless of who you choose, the upfront cost of good tax advice tends to be quite high.Comment
-
-
Excellent thread on this utter debacle. I am a victim of Boox and fortunately I left them at the very start of the 2018/19 tax year so 'only' been caught by this nonsense for 1 year. Nonetheless this has been super stressful.
At the start of my working life I actually worked for HMRC and of course was accutely aware of how they operate....quite fairly back then IMO. After working for consultancies (made redundant twice) and in tough permy roles I decided I had had enough of others controlling my career and made the decision to contract purely to be in control of where I worked, what I worked on, and for how long and of course whilst tax efficiency was part of that, it was not the driver. At the time I was aware of offshore and loan schemes as I knew many contractors that bragged about how much tax they're avoiding and I just thought they were dumb as HMRC will bite them one day. I decided I wanted an accountant that gave me visibility of my business's financial status at all times and the portal through Boox fitted the bill. Never in a million years did I think my choice of accountant would have HMRC repurcussions years later and yet here I am!
Mercifully I do have insurance and have had the appeal lodged and stood over and the advisor has suggested making a POA to reduce interest charges but I am struggling to know what is exactly due as the calculations by HMRC seem to be plucked out of thin air!
What seems to be the general consensus is the total amount of dividends and PAYE paid is put through a tax calculator and the PAYE, NIC for employee and employer is the total amount that would be due for that year. I am also assuming that double taxation will not apply so CT and PAYE will be offset against that liability and the remainder would be the amount to make a POA?
Is that right? Only if that is the case then they owe me a small refund which seems to good to be true.
What a shambles.Comment
Comment