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Recent content by computething
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Churchill Knight & Boox clients being investigated as Managed Service Companies
HMRC will want to keep your money for as long as they can so that they can make more profit. When you lend money to HMRC they pay you back with interest 1% below Bank of England base rate. If you owe HMRC money they charge interest at 4% above Bank of England base rate. And of course, HMRC...- computething
- Post #3,189
- Forum: HMRC Scheme Enquiries
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Churchill Knight & Boox clients being investigated as Managed Service Companies
A change in method is not a change in quantum. Imagine if I went to a supermarket and bought some bananas charged by weight at £1 per kg. Being told to stand on some scales while holding the bananas, is quite different from placing the bananas on a scale that just weighs the bananas. With HMRC's...- computething
- Post #3,178
- Forum: HMRC Scheme Enquiries
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Churchill Knight & Boox clients being investigated as Managed Service Companies
But HMRC didn't even use the information they had available to them in the form of company accounts and VAT returns. In my case, HMRC would only need to look at the Balance Sheet in my company accounts to see increasing reserves every year. And I don't understand what part of producing a Reg 80...- computething
- Post #3,176
- Forum: HMRC Scheme Enquiries
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Churchill Knight & Boox clients being investigated as Managed Service Companies
Section ITEPA 2003 61E (1) Step 1 states "Find (applying section 61F) the amount of the payment or benefit mentioned in section 61D(1)(b)." 61D(1)(b) states "the worker, or an associate of the worker, receives (from any person) a payment or benefit which can reasonably be taken to be in respect...- computething
- Post #3,174
- Forum: HMRC Scheme Enquiries
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Churchill Knight & Boox clients being investigated as Managed Service Companies
Spot on. But once the formal Reg 80 process has started, its rules are binding. The Reg 80 is frozen except for matters of quantum, and the grounds for the determination cannot be amended. Any appeal must be lodged with one month of the determination. For matters of quantum, HMRC may agree a...- computething
- Post #3,172
- Forum: HMRC Scheme Enquiries
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Churchill Knight & Boox clients being investigated as Managed Service Companies
I still have to differ. Each Reg 80 is for specific tax year. The MSC legislation including all the specified calculations. All taxation relates to tax year. The "cumulative" wording in ESM3510 relates to the progression through the tax year. In The CK and Boox cases, determinations were issued...- computething
- Post #3,171
- Forum: HMRC Scheme Enquiries
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Churchill Knight & Boox clients being investigated as Managed Service Companies
Tax enquiry vs Reg 80 determination We all received letters in March 2022 with Reg 80 Determinations. In my case, these referenced HMRC's enquiry into Boox. I expect every letter referenced an enquiry into one or the other accountant, even if it was the wrong one in some cases. We received...- computething
- Post #3,168
- Forum: HMRC Scheme Enquiries
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Churchill Knight & Boox clients being investigated as Managed Service Companies
jamesbrown raised an interesting point about the cumulative nature of worker payments vs company revenue. Cumulative calculation from the beginning of the tax year I don't remember seeing the part of https://www.gov.uk/hmrc-internal-man...manual/esm3510. where it talks about the cumulative...- computething
- Post #3,167
- Forum: HMRC Scheme Enquiries
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Churchill Knight & Boox clients being investigated as Managed Service Companies
HMRC issued Reg 80 Determinations shortly before the end of tax 2021-2022 to meet the deadline of issuing the determinations within the 4 year time limit for the tax year 2017-2018. That formal document is independent of opening and closing enquiries. That is the starting point for the 1 month...- computething
- Post #3,165
- Forum: HMRC Scheme Enquiries
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Churchill Knight & Boox clients being investigated as Managed Service Companies
Thanks James for clarifying the position on retention of evidence. "Protecting a position" is not part of the legislation. The legislation does allow for a determination to use estimated values that may be refined downwards later based on more detailed information. Additional fact finding may...- computething
- Post #3,163
- Forum: HMRC Scheme Enquiries
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Churchill Knight & Boox clients being investigated as Managed Service Companies
HMRC have been saying they would "write again when we have more information about the Lead Cases" for years. They have been using that as a stock answer since 2023. In March this year, HMRC wrote to all Boox clients stating "HMRC's position that The App Accounting Group t/a Boox is a Managed...- computething
- Post #3,161
- Forum: HMRC Scheme Enquiries
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Churchill Knight & Boox clients being investigated as Managed Service Companies
The appellant who had the case against him thrown out was a significant player in the case for the debt transfer to Boox, because it was the same debt being transferred. Although the case was technically just debt transfer, the legal arguments used will be significant to all of us. An argument...- computething
- Post #3,159
- Forum: HMRC Scheme Enquiries
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Churchill Knight & Boox clients being investigated as Managed Service Companies
Yes those Reg 80 determinations were a long time ago, just before the 4 year deadline. Those determinations would be invalid if HMRC did not apply "best judgement". The wrong method of calculation would not be best judgement, although HMRC are desperate to portray the changes in the calculations...- computething
- Post #3,157
- Forum: HMRC Scheme Enquiries
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Churchill Knight & Boox clients being investigated as Managed Service Companies
The hearing in June was a debt transfer hearing and did not have any lead cases. It covered the transfer of debt from a business that had closed down to the owner of the business. It also covered the debt transfer from that business to Boox and the director of Boox. One of Boox's defences...- computething
- Post #3,156
- Forum: HMRC Scheme Enquiries
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Churchill Knight & Boox clients being investigated as Managed Service Companies
To me, that sounds like an admission that the original determinations were incorrect and they want to create new determinations. HMRC have already admitted that the original determinations were incorrect because they used company turnover as the starting point for the calculations, rather than...- computething
- Post #3,152
- Forum: HMRC Scheme Enquiries
