Churchill Knight & Boox clients being investigated as Managed Service Companies

[woody1]

Yes this does seem bizarre. An MSC determination means pretty much everything is taxed as though you were an employee. Virtually no expenses would be exempt. And what the heck does it matter the ins and outs of what your Spouse received, when MSC means everything is treated as your income.

Could they be hedging their bets? If not MSC, then IR35? Who knows with this bunch of muppets.

[cojak]

it seems all a little if we can’t get them on msc can we get them on ir35, and if we can’t get them on that can we get them on expenses, and if not that what about spousal eligibility of dividends.

why are they asking me about the personal services my company provided and not my so called “employer “ boox? Could it be that they didn’t provide me a managed service of my company?

This definitely looks like a wide trawl through all of your accounts to find something to make it worth their while.

[jamesbrown]

For those that haven't seen this, FWIW:

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

Personally, I think that's a bit of an optimistic take on whether IR35 might be relevant later on. It isn't top of their mind right now for the reason given - the order of application of ITEPA 9 vs. 8/10 - but it could become relevant later on, depending on how the legal process develops.

[geekergosum]

This definitely looks like a wide trawl through all of your accounts to find something to make it worth their while.

That’s what the whole spousal dividend investigation seems. Why is this a thing…I don’t believe it’s purely because if I’m a MSc (which I’m not) it’s not something you can do

[Lotok]

I wonder if this is too small an issue to try and get someone like Martin Lewis involved. There has never been a lot of media attention around this and really it feels just like HMRC trying to use unrelated legislation to raise extra money from unsuspecting tax payers.

[GregRickshaw]

I wonder if this is too small an issue to try and get someone like Martin Lewis involved. There has never been a lot of media attention around this and really it feels just like HMRC trying to use unrelated legislation to raise extra money from unsuspecting tax payers.

There are many reasons why Martin wouldn't take this on, the primary reason is the general public don't give a flying monkey about tax dodging, neer do well contractors, just look at the loan charge scandal, there is virtually zero sympathy for anyone involved in that in the wider public.

The other reason of course he would be preaching to a congregation of around 2000 people, that's just a waste of his time I'm afraid.

Some of the professional publications Computer Weekly etc., are doing their best and the legacy media also started fairly strongly but they reported it as they should as news.

The reason the PO scandal hit home was down to there being a drama shown and it was the good old post office the place everyone loves to think of as being quintessentially British. Can you imagine if the scandal about IT systems caused the downfall of managers of local bookmakers?

We're on our own here 'no one is coming to save you'

[woody1]

As a story, it will only gain any traction if HMRC lose in court. Plenty of MPs would be lining up to give them a good kicking for overreaching their powers, persecuting contractors (yet again), wasting public money etc.

That's a very big "if" of course.

[RightAngle]

Hi everyone,

So I asked ChatGPT the other day what would be the likelihood of HMRC winning the MSC case. It provided me a figure ranging from 60-70% based on the information which it has to base its answers.

No idea how ChatGPT came to this conclusion but I found this quite interesting and just wanted to share.

What do you all think about this? Would you put the odds of HMRC winning as something different?

[cojak]

I wouldn’t trust ChatGpt as far as I could spit, and you can guess how much I think the odds are.

[Lotok]

I wouldn’t trust ChatGpt as far as I could spit, and you can guess how much I think the odds are.