Reply to: Churchill Knight & Boox clients being investigated as Managed Service Companies

[GregRickshaw]

Im wondering whether to shut the company down. If any refunds materialise from HMRC, will have to re-open the company and you can only do that within six years of closing. It's 2025 and the test cases have not gone to trial yet. If the court cases drag on longer than six years any refunds to the closed company will go to the Crown. No idea what to do.

Again unfortunately you won't be able to shut your company down (if you mean to strike it off) HMRC won't allow it.

[plowpoelw]

Unfortunately I contacted them a couple of times to try and argue my point with a ton of evidence showing how I was independent of control, had my company set up before contracting Boox and generally showing the PSC/Accountant relationship with me getting accountancy (not tax) advice and telling them how much I wanted to pay myself which varied month to month...usually against the guidance of Boox.. They have been silent for a long time...Guess I'll file my last Corp tax for up to Apr 24 and see if they will lift the block to shut the company.

Im wondering whether to shut the company down. If any refunds materialise from HMRC, will have to re-open the company and you can only do that within six years of closing. It's 2025 and the test cases have not gone to trial yet. If the court cases drag on longer than six years any refunds to the closed company will go to the Crown. No idea what to do.

[Fuzzynavel]

CK clients too, I didn't see the news on the article you linked, but we were advised of this about a month ago. I don't truly think many of us were surprised (annoyed yes) surprised no. I'm sure there are multiple 100s of contractors who never took any action at all from the very first letter.

Unfortunately I contacted them a couple of times to try and argue my point with a ton of evidence showing how I was independent of control, had my company set up before contracting Boox and generally showing the PSC/Accountant relationship with me getting accountancy (not tax) advice and telling them how much I wanted to pay myself which varied month to month...usually against the guidance of Boox.. They have been silent for a long time...Guess I'll file my last Corp tax for up to Apr 24 and see if they will lift the block to shut the company.

[GregRickshaw]

It's good news - it means their target number goes down and so they devote less resources to it.

As I have said for a long time, they are merely honing in on the targets.

They don't care about the collateral which got in their way.

They have always been about trapping just a few in an inescapable trap, to get their legislation, that's all this has ever been about.

Once they have that it will send the remaining PSCs into the arms of umbrellas and a PAYE structure.

[Guy Incognito]

It's good news - it means their target number goes down and so they devote less resources to it.

[GregRickshaw]

Did anyone spot this last week?

https://www.accountingweb.co.uk/tax/...cape-crackdown

CK clients too, I didn't see the news on the article you linked, but we were advised of this about a month ago. I don't truly think many of us were surprised (annoyed yes) surprised no. I'm sure there are multiple 100s of contractors who never took any action at all from the very first letter.

[ladymuck]

Did anyone spot this last week?

https://www.accountingweb.co.uk/tax/...cape-crackdown

HMRC has been accused of “stunning incompetence” by a leading employment status expert after 246 former clients of Boox who failed to appeal PAYE determinations under the managed services companies (MSC) legislation may get off, whereas the 915 that did file an appeal may end up having to pay.

[nekro]

Glad I didn't make POA.

[jamesbrown]

Also worth noting that you can make a payment on account to avoid this interest.

[jamesbrown]

More good news....


https://www.contractoruk.com/news/0016587will_hmrcs_9_interest_rate_bully_you_submis sion.html

Typo (space) in your link. Here's the correct one:

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

[rdw1970]

More good news....


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

[praxeologist]

They threw my first two years out too, almost 6 months from the start of this so over two years ago and I'll still haven't had a penny back of the amount I paid on account and all lines of enquiry have gone completely silent.

Did you pay on account?

I did not pay on account because I anticipated the same problem you're facing.

[GregRickshaw]

We wrote to HMRC again in August asking to reduce the demands for all of the years based on the above to nil. They have finally come back saying they reviewed it and reduced all the years for which they've made demands to nil.

Good luck to everybody else.

They threw my first two years out too, almost 6 months from the start of this so over two years ago and I'll still haven't had a penny back of the amount I paid on account and all lines of enquiry have gone completely silent.

Did you pay on account?

[praxeologist]

You're not alone. Hang in there. Hopefully you have some robust evidence in your favour. Be prepared however that HMRC have no ethics, mercy, sense of logic or are capable of sensibly dealign with this matter.

I did not pay on account. I estimate it would be hard to get the funds back promptly once they have them after this outrageous extortion attempt is quashed.

HMRC so far want three tax years. I assume that's the case for most of us. In my case the defence is as follows:
- in the first year under consideration I did not receive more than half of the company's revenue as per 1(b) of https://www.legislation.gov.uk/ukpga/2003/1/section/61B
- in the latter two years my company wasn't a client of the "MSCP" (I appointed a different accountant and broke any contact with the "MSCP")

HMRC have so far ignored the above evidence (new accountant contract+old accountant disengagement email, bank statements for the 1(b) rule etc) and sent a templated response about waiting for the test cases. I have also compiled extensive evidence of emails, statements, agreements etc of me running my own business as a backup. I fully expect them to raise another set of demands for the following years even though I have had nothing to do with the MSCP for years. To top it all, like others, I've been coerced into a standstill agreement re NICs.

We wrote to HMRC again in August asking to reduce the demands for all of the years based on the above to nil. They have finally come back saying they reviewed it and reduced all the years for which they've made demands to nil.

Good luck to everybody else.

[GregRickshaw]

Who is the email from? Care to share it?

No we cannot share it here. The gist is all you and Hector need to see.