Churchill Knight & Boox clients being investigated as Managed Service Companies

[GregRickshaw]

I may be misremembering but I thought they calculated the total amount to pay by adding the relevant interest (at what was then the prevailing rate) to the assessed amount and then splitting that into equal payments of £xxx per month. I also think they just used simple interest based on the outstanding balance per month rather than compounding. But ICBW, my memory is pretty shot. I also had the help of a tax specialist who beat them down on various issues.

They did but the original post suggesting a kind of compounding interest which isn't true.

[Snooky]

I don't know if the interest part, the way you describe, is going to be true for these payments, but after dealing with HMRC previously they did not add interest continually (as per a mortgage) thus compounding the payments month on month.

HMRC calculated what I owed (including interest and late payment fees) and gave me the figure. You may be able to do it yourself but you can probably get the late payment fees removed and the interest on those, which was (and will be in this case) quite substantial, I had a tax specialist do this for me.

I may be misremembering but I thought they calculated the total amount to pay by adding the relevant interest (at what was then the prevailing rate) to the assessed amount and then splitting that into equal payments of £xxx per month. I also think they just used simple interest based on the outstanding balance per month rather than compounding. But ICBW, my memory is pretty shot. I also had the help of a tax specialist who beat them down on various issues.

[jamesbrown]

interesting approach

Optimistic, at least.

[saptastic]

A spam post advertising Churchill knight’s new website.

Really? advertising in this thread. interesting approach.

[eek]

Hopefully it's not just the website they've changed.

I should been clearer, the new website is a new business providing "expert" advice for those impacted by the MSC issue - as you can tell by the changes they made to their main website I don't rate the advice they are offering very highly...

[jamesbrown]

I don't know if the interest part, the way you describe, is going to be true for these payments, but after dealing with HMRC previously they did not add interest continually (as per a mortgage) thus compounding the payments month on month.

Interest on late payments is always simple, not compounded.

[Fred Bloggs]

Hopefully it's not just the website they've changed.

Nope. Copied a few seconds ago from CK website.

"We have carefully constructed our limited company packages to suit contractors and freelancers at each career stage. If you want to take care of some of the work yourself or prefer a completely hands-off approach, you have the option to choose."

Seriously, anyone choosing this company needs their head examining.

[GregRickshaw]

You can ask for Time To Pay (TTP), you have to provide details of your income and outgoings and a proposal of how much you think you can pay each month. Like any creditor, they'd rather get all their money over a longer period than get none.

One drawback is that the interest continues to be added to the outstanding amount.

https://www.gov.uk/guidance/find-out...ay-arrangement

I don't know if the interest part, the way you describe, is going to be true for these payments, but after dealing with HMRC previously they did not add interest continually (as per a mortgage) thus compounding the payments month on month.

HMRC calculated what I owed (including interest and late payment fees) and gave me the figure. You may be able to do it yourself but you can probably get the late payment fees removed and the interest on those, which was (and will be in this case) quite substantial, I had a tax specialist do this for me.

I also got a very long TTP (10+years) thanks to my MP so consider getting their help. I ended up paying it off in much less time but still it was a huge relief on my personal life when I got the long TTP.

[woody1]

A spam post advertising Churchill knight’s new website.

Hopefully it's not just the website they've changed.

[eek]

What "gem of wisdom" did I miss?

A spam post advertising Churchill knight’s new website.