I have been asked by a family member to keep books for their small, part time business buying/selling on the internet. I think this is a good way to get some experience whilst continuing to study. (I am ICB maunal level 2 qualified at the moment).
I just wondered where I stand regarding MLR and insurance? I am only a student member of the ICB which suits me while I am still studying and have no "proper" clients. I have looked at the cost of upgrading to full membership and taking out insurance and it far outweighs anything I might earn from such a small job. However I do want the experience. Do I need to take it out??
If I become self employed or take on a proper client I would want MLR cover and insurance to fully protect myself and client, but it seems unnecessary when doing a favour for a family member to gain some experience.
If you are employed (part-time or full time) you would not need MLR Cover or a Practice License.
The ICB membership, practice license, MLR cover/support and insurance starts at £192.25 for the year. Would your family member cover those fees?
Alternatively if you are working for free you can register with the HMRC for free (at least you used to be able to but I cannot find this info anymore). However, they don't register people who are with a professional body so not sure how your registration with ICB would affect it.
Of course you might actualy want the extra support the ICB can give you as it is your first client.
Yeah "If you are employed (part-time or full time) you would not need MLR Cover or a Practice License"
I was suggesting that Jacky could work for minimum wage part time or something, but it might be cheaper for the family member to cover part or all of her PL and MLR etc fees.
I contacted HMRC asking the same thing and this was my response from MLR Central Intervention Team:
'If you are offering your services for free you would not be required to register. The Money laundering regulations apply to those who offer their services "by way of business" which effectively means those who charge a fee'
I hope this helps, but here is the email address should you need to contact them:
Don't forget the HMRC don't write the law, they just interpret and follow it like the other supervisory authorities.
If you are studying to become an Accountancy Service Provider (ASP), and you are offering those services, even for free, and you have clients, then that is a business, just not a profitable one. You are still providing accountancy services.
It is a bit of a grey area, but considering the heavy fines if you don't follow the rules, I would strongly recommend registering. It is not a huge cost in registering, works out at the equivalent of about £17 per month for the year with ICB.
Oh thought I would just add that if you are a current student you may not need to pay the full year if you have some time left on your registration. You can just upgrade the remaining registration.
So what if you are a member of the ICB and have a practice license for your business and have employees (employed by the company) do they have to be registered with HMRC or member of any institute?
Only the entity that is offering the services needs supervision. So in your example the business would have the license, the staff would be covered under it.
