Hi, desperate for help. I have always pd to HMRC for MLR but now I only have a couple of small clients. I do their book keeping at their premises on their accountancy packages. I send in the VAT return form their log in. I give no financial advice and all their records then go to their own accountants. The only thing I do from home is wages. £300 I really can't afford. Any advice grateful.
Hi, desperate for help. I have always pd to HMRC for MLR but now I only have a couple of small clients. I do their book keeping at their premises on their accountancy packages. I send in the VAT return form their log in. I give no financial advice and all their records then go to their own accountants. The only thing I do from home is wages. £300 I really can't afford. Any advice grateful.
Hi Julie, welcome to the forum. Please feel free to join in and contribute. It helps if we know a bit about you, so how about an introductory post?
If you are in business as a bookkeeper then MLR is required. The only way to avoid it is to be employed direct by your clients. but that still leaves you with the fact that you are also doing wages from home. I believe (and you would need to check it out) that whilst at one time you didn't necessarily need MLR as a payroll provider, they have now tightened up on this.
That said, are you aware that if your turnover is under £5k, you can apply for a reduced MLR cost of £180
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
John replied in just over an hour, with some very useful additional information. Yet nothing back - no acknowledgement of his help! Poor form.
If you are self employed or working for these clients through your own limited company then you have to cough up the required fee (or register with another provider). Its the law. The fee for non compliance will run into £000s plus a custodial sentence so £300 is nothing! Besides, even with tax built in you could just bill a couple of clients an extra £4+ per week to get the additional fee covered, so I dont see the issue. Not to say I dont think the increase by HMRC isnt a mickey take!
You could have bigger issues on the horizon with IR35, albeit without the requested intro who knows. Bit hard to answer questions with half info.
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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
