Churchill Knight & Boox clients being investigated as Managed Service Companies

[dochkaian]

Having received the Section 8 Notice yesterday along with the Standstill agreement.

What action are others taking on the Standstill agreement? It appears there is no choice but to enter it, or am I missing something . .. I probably am . .

[AndrewJames]

Dear Everyone,

It's been a while, and it's been surprisingly quiet. I hope this is due to a reduction in developments related to the case rather than everyone closing shop. I have a question that I hope some of you, with your expertise, could assist me with. After working diligently this year to clear the outstanding payment (on-account), it has finally been settled until further notice... years I am told! My plan now is to make the company dormant and establish a new one. My question is, am I being overly cautious in taking this step?

My rationale is that the more I continue trading in the current 'tainted' company, the more HMRC could potentially have access to it in the future. Therefore, by starting fresh, I can mitigate this concern. The only drawback would be the annual cost of around £500 to my current accountant for year-end accounts on company made dormant. I would appreciate your thoughts on this matter.

My understanding is that the debit if not paid from the company it then transferred to the director. Therefore what is the point of opening a new company? Please correct me

[jimmyoyang]

Dear Everyone,

It's been a while, and it's been surprisingly quiet. I hope this is due to a reduction in developments related to the case rather than everyone closing shop. I have a question that I hope some of you, with your expertise, could assist me with. After working diligently this year to clear the outstanding payment (on-account), it has finally been settled until further notice... years I am told! My plan now is to make the company dormant and establish a new one. My question is, am I being overly cautious in taking this step?

My rationale is that the more I continue trading in the current 'tainted' company, the more HMRC could potentially have access to it in the future. Therefore, by starting fresh, I can mitigate this concern. The only drawback would be the annual cost of around £500 to my current accountant for year-end accounts on company made dormant. I would appreciate your thoughts on this matter.

My understanding is that the debit if not paid from the company it then transferred to the director. Therefore what is the point of opening a new company? Please correct me

The perceived debt, which was paid through a payment-on-account, means there won't be a direct transfer of the debt to me as the director. The outstanding amount will be addressed when the case concludes in the upcoming years. However, my main concern is that my current company's reputation has been affected, making it a potential target for HMRC. Starting afresh with a new company would provide a clean slate, allowing me to conduct business without the shadow of the past (the old company will be made dormant).

In response to the suggestion of closing down the current company, two reasons prevent this. First, the ongoing investigation might make it challenging to do so. Second, I prefer to wait for the investigation's outcome as there's a chance I could recover the funds paid on account (to avoid double taxation, as discussed).

I recently consulted my accountant, who expressed reservations about the idea of making the current company dormant and opening a new one, suggesting that HMRC would pursue me regardless of the company's status. However, James Brown's response has convinced me that taking this precautionary step is still a sensible move.

[AndrewJames]

I'm looking for recommendations from anyone on the forum who has or is using any tax specialists/advisors or tax solicitors who can provide tailored advice regarding the Boox MSC saga and have provided a clear roadmap to navigate out of this or at the very least reduce the financial impact. The current advisor I am using only offers a generic appeal and requires someone more on the ball with this situation.

[jamesbrown]

My understanding is that the debit if not paid from the company it then transferred to the director. Therefore what is the point of opening a new company? Please correct me

The transfer of debt rules within ITEPA Part 2 Ch. 9 are draconian, it's true, but they will need to engage that process. The Reg 80 itself falls on the company. It seems sensible to start afresh with a new company, but it definitely isn't a magical solution to avoid the original liability.

[nekro]

I'm looking for recommendations from anyone on the forum who has or is using any tax specialists/advisors or tax solicitors who can provide tailored advice regarding the Boox MSC saga and have provided a clear roadmap to navigate out of this or at the very least reduce the financial impact. The current advisor I am using only offers a generic appeal and requires someone more on the ball with this situation.

WTT

[ritwolf]

Having received the Section 8 Notice yesterday along with the Standstill agreement.

What action are others taking on the Standstill agreement? It appears there is no choice but to enter it, or am I missing something . .. I probably am . .

Yes, someone shared a link previously explaining how we almost have no other option.

On the other hand, I find it unfairly convenient for HMRC and contradictory that, as directors of our companies, we are the ones who will take the decision to agree/disagree with the Standstill Agreement offered by HMRC, but then we are being told we didn't have control. Why send the offer to us and not to the MSCP then?

[cojak]

In case anyone has missed this…

How Boox’s ‘MSC contractors’ should deal with an HMRC Standstill Agreement


https://www.contractoruk.com/news/00...agreement.html

[gikap]

When is the HMRC's NICs recovery window deadline for tax year 2017/2018? Is it end of March, 2024 or a different, arbitrary date?

[WTFH]

When is the HMRC's NICs recovery window deadline for tax year 2017/2018? Is it end of March, 2024 or a different, arbitrary date?

In theory, if it's just 17/18 and no other years after that, then you'd expect it to be April 2024.
In practice, you'd need to get a professional tax adviser to go through your situation and work out what is going on.