I have been practising as a self employed bookkeeper and have just recently come across the fact i need to register for Money Laundering Registration...
I have applied online to register for it but am now worried about two things:
1. Since i have been practising without it not knowing i needed it... could i now be in serious trouble? I never received anything from HMRC stating i needed to sign up for it or else i certainly would of, and nothing about it came up in any of my bookkeeping course, im not affiliated with any bodies ...
2. What is actually involved in the process once i apply? IF i do bookkeeping for a LTD company and the director pays for something out of his own cash/money on behalf of the business and then claims it back of the business at a later date (like a loan) do i need to investigate everytime this is done? Do i need to find out where customers of the LTD company get there money ? IF cheques or cash are lodged into the LTD company bank what kind of measures am i suppose to take? or am i only suppose to investigate/question transactions that involve me and the LTD company?
Is there anything else i am suppose to apply for while practicing as a bookkeeper from home. I basically input purchase and sale invoices, do the bank reconcilations and submit the VAT returns, the signing of books etc is done by companies accountants.
Sorry if I sound over worried or concerned, I really just want to do everything by the book
Take a deep breath. First thing is get that MLR completed ASAP.
When you take on a new client you should take ID and verify who they are. Take copies of ID. MLR only comes into play after that if you suspect that the client is doing something dodgy, you then file a report which HMRC pick up and investigate if need be. DO NOT INFORM THE CLIENT if you do file a report.
Directors taking money out of the business using loans is not a MLR offence, its a perfectly legitimate transaction, so don't worry on that score. But if it transpires they are hiding money or not reporting all their sales then that is. It may be worth reading up on MLR, and feel free to ask questions here.
Who did you do your training with? I'm very surprised it didn't crop up in your studies.
You should also have professional Indemnity insurance but it isn't a legal requirement.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Hi Everyone!
Thank you for your reply John and advice! Sorry I havn't been back on I thought I would get an email if someone replied just went on to check now... :)
I will sign up with MLR, my book keeping qualification is with IAB.
I will probably have to back date the fee as i presume its a £100 fee a year? I just hope its not too much of a fine
Hi Everyone! Thank you for your reply John and advice! Sorry I havn't been back on I thought I would get an email if someone replied just went on to check now... :) I will sign up with MLR, my book keeping qualification is with IAB. I will probably have to back date the fee as i presume its a £100 fee a year? I just hope its not too much of a fine
No problem Lydia
It's £215 for the first year then £115 a year after that but as Joanne says, you should already be covered under IAB if you are a member.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
I don't know what I'd do if I realised I'd made this mistake.
Most magazines are full of members who haven't complied with getting MLR cover, and more so having no PII insurance.
You could make an open and frank admission to the IAB - easier than being found out. Assuming they dont cover her. All a bit of a guessing game at the mo without some proper detail.
Ignorance of the law excuses no man, so they say. Bud honesty usually helps a case. Agree with you on that score - if its needed!
Good luck
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
We need a like button on the forum, seems rude to recognise a post and not reply.
Obviously a like isn't the same as a thank you :)
Some you dont get a thank nor a kiss my arse nor anything!! Effin rude when we go to the trouble of responding. One such one where Im getting close to having a rant!!!!!!!!
Though you have to be sure they are def not reporting on purpose and pocketing the cash. Not like one of my clients who really just hasn't got a clue so when I'm there I have to create the sales invoices for the random money that appears in their account. Thankfully they do have the sense to make a written note on customers files of who has given them the money and what it is for.
Though you have to be sure they are def not reporting on purpose and pocketing the cash. Not like one of my clients who really just hasn't got a clue so when I'm there I have to create the sales invoices for the random money that appears in their account. Thankfully they do have the sense to make a written note on customers files of who has given them the money and what it is for.
Sounds like placement, layering and intergration to me!
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Johnny - Owner of an overly-active keyboard.
A man who can read, yet doesn't, is in no way wiser than a man who can't.
Hi everyone, sorry for the late reply my internet is ridiculous.
I done a course which provided me with an IAB cert at the end but no I am not a member.
I have been employed bookkeeper for three years and started self employed nearly two years ago.
I spoke to other bookkeepers that didn't realise either although i know ignorance isnt an excuse, it seems alot of people havn't registered ? (well that i spoke to anyway) Some seemed to assume there clients accountants covered that end. Although i know now that isnt the case.
I live in Northern Ireland, but my clients are in the Republic of Ireland, I did have another client in the UK but not anymore. Do I only need to apply to MLR if I have UK clients?
I applied to register with them online through the form but they just sent an email saying thank you and to wait for another email that was last week.
Also - worth looing into the rules on the Irish tax office site for coverage in the ROI - not sure if they have the 'where your office is based' type of rules or not.
As an aside - are you registered as an agent for dealing with VAT in ROI? Ive got to set this up (for a UK based Limited company who does over the threshold in ROI) and havent got much further than the fact the item is on my to do list - so any advice would be welcome.
TIA
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
I wonder has anyone registered so late before ? I'm really worried about getting a large fine, i read some where someone got £3000 but I dont know how true that is.
If I'm going to be fined so much it might be better just to close the company altogether... I only have one small client and only registered as self employed so to make sure i did things right and paid all my taxes. I'm also employed three days a week and just got this small job as extra money but it doesnt pay an awful lot, i might just have to give it up, I wonder will i still be expected to register and backdate it if no longer trade.
I havn't registered for an agent with VAT in ROI @cheshire, sorry i cant help there!!
it would seem from this part of the website if i understand correctly, that if i apply today write a letter explaining my ignorance/foolishness for not researching all legality with setting up a bookkeeping business, I will have to pay the MLR for last tax year and this tax year together with a £100 fine?
If This is correct maybe it will help others, I did get contact with my course provider as why it was never mentioned, they said they said they teach you to be employed bookkeeper not self employed...! Anyway hopefully from this site it looks like i might avoid £1000's fine or worse..
Sorry, started typing this ealier and then got stuck on phone................
As Johnny said you would be better owning up - the fines are usually less for voluntary disclosures. You may find if you write the letter in a certain way that they do not fine you at all, just expect you to pay the fees, including any back fees. If you do nothing and even if you close the business (which is you, rather than a limited!) they can still fine you and it will be worse as then they tend to throw the book at you.
Dont delay
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Thanks everyone I have the apologetic letter wrote the form filled and the cheque filled out including the backdated fees! So hopefully the unprompted clear up will melt there hearts and they won't fine me lol either way thanks to you all for your reassurance and help! I look forward to returning the favour on the forum!
