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The following is an official statement from Churchill Knight & Associates Ltd in response to HMRC’s investigation regarding the Managed Service Company (MSC) Legislation.
HMRC have been investigating limited company contractors and accountancy services providers for many years to ensure they follow the latest tax rules and regulations. As part of this, Churchill Knight & Associates Ltd clients have been examined to see if they fall within the Managed Service Company (MSC) legislation.
HMRC’s initial assessment, which focuses on the 2017/18 tax year, incorrectly considers Churchill Knight & Associates Ltd clients to be Managed Service Companies.
Our stance
We believe HMRC’s investigation showcases an incorrect application of the MSC legislation, and therefore HMRC has made a mistake and MSC legislation does not apply. Working closely with specialist lawyers, we have submitted a thorough technical response to HMRC explaining many reasons why we believe they have misinterpreted the legislation.
Tom Edwards, Director at Churchill Knight & Associates Ltd, has said the following regarding the HMRC investigation:
“We believe that HMRC has entirely misinterpreted the MSC legislation, and we strongly deny being involved with our accountancy clients as a Managed Service Company Provider. Throughout this investigation, we’re offering around the clock support to our impacted clients and have built an online portal to help them throughout the appeals process.
Everyone at Churchill Knight is shocked about this investigation, but I don’t feel like it’s an attack on us. It’s an attack on the industry and on contractors who operate their own limited company.”
A message for our impacted clients
If you have received a letter from HMRC regarding the MSC investigation, you should also have also received an email from us with information about our dedicated Appeals Portal. The portal will provide you with all the information you need, including a helpful FAQ section, and a feature that’ll assist you throughout the appeals process. If you need to send us a message regarding this, please do so through the portal – to ensure your message reaches our specialist who can help.
We're regularly adding new, helpful content
The Churchill Knight blog is regularly updated with helpful content for contractors and freelancers – especially articles that answer the most frequently asked questions about umbrella companies! Please pop back shortly to see the latest articles written by Andrew Trodden (Marketing Manager) and Clare Denison (Marketing Executive).