I went from being an employed book-keeper to a self employed book-keeper simply to simplify my own tax situation, to save having lots of part time jobs and splitting my tax code, I realise ignorance is not an excuse but I did not know I needed to register, all my jobs/clients have come through an accountant recommending me to his clients! He has never asked nor suggested I register, I do not give advise or submit any final accounts but having read this forum and HMRC's web site I realise I should be registered for MLR.
So I suppose my question is if I register now will they take action against me/fine me and can I carry on working whilst this comes through?
I'm sorry, but this is all going to be bad news, but you can get past this if you have a plan. Talk to the accountancy firm. They might be able to come up with a solution - it will be in their own interests to.
Now, you must own up to HMRC right away! It's a criminal offence to provide bookkeeping services without either being a member of an approved regulatory organisation, or being registered by HMRC direct. HMRC is able to impose penalties on those who commit such offences, the size/severity of which depends on factors such as the size of your business, the risk you are exposed to regarding money laundering and other factors, including whether it was they who discovered the breach, or you who notified it. Sometimes a penalty is mandatory; it can include gaol (unlikely in your case, I imagine).
Continuing to trade in the knowledge that you are committing an offence can only make matters worse.
However, the penalty may (I could say, will) be reduced if you are open and co-operative about the breach and give an undertaking to register and be compliant in future. I doubt it will eliminate the penalty entirely, but I do know reductions can be significant if you show the appropriate contrition and commitment to comply in future. Also, you may be able to negotiate payment terms. The consequence of not owning up and being found out ... and you will be ... will be heavier penalties and the question will be raised as to your suitability to be approved for money laundering purposes at all.
... And, no, you must not carry on working until you have been approved. (Unless you can become an employee again?)
The address to report this breach to is:
HMRC AMLS Central Intervention Team
7th Floor NW, Alexander House
21 Victoria Avenue
Southend on Sea
SS99 1AG
Perhaps your accountants can help you with regard to making the disclosure.
I have applied to join a professional body today and also started to ensure I am compliant with the MLR, so I should be legal and above board very soon.
