ECSH43533 - Registration exemptions by sector - Accountancy service providers: Accountancy service providers not required to register

There are a small number of accountancy service providers (ASPs) who are not required to register for anti-money laundering supervision as they fall out of scope of the Money Laundering Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), the information below sets out some of the more common scenarios.

On a non-commercial basis 

Businesses who are offering accountancy services on a non-commercial basis are not carrying out accountancy services ‘by way of business,’ and are therefore not required to register.  

Accountancy services within a group 

Businesses are not acting as an ASP  in the circumstances below: 

  • for another member or part of that group  

  • to a related party

Community accountants 

Community accountants can provide a variety of accountancy services to both individuals and businesses, the main question is whether they are provided by way of business. Some charge a small fee for their services, and some make no charge at all. 

You will need to look at the circumstances of each case in order to make a decision, taking into account the purpose of MLR 2017 in relation to the prevention of money laundering, and not in relation to any liability to tax. 

Charging a small fee (a "nominal fee") does not necessarily mean that services are provided ‘by way of business.’ You may need to refer to the policy team for advice they can be contacted via email at ecs.policy@hmrc.gov.uk. 

Where community accountancy services are provided by bodies which are registered charities, at no charge, they are currently outside the scope of MLR 20217. 

Where community accountancy services are provided by bodies which are registered charities, for a small charge, but any profits could not be distributed and / or they are subsidised by grants from local authorities or other government bodies, they are also outside the scope of MLR 2017. 

Insolvency practitioners 

Insolvency practitioners are not required to register with HMRC for the purposes of MLR 2017 (as they will be supervised by the Insolvency Service).


Payroll Services Provider to a third party 

Payroll services provider to a third party are not ASPs for the purposes of MLR 2017 if they only do any of the following: 

  • provide software or hardware service support for payroll data processing, as long as they do not analyse or prepare any financial information. 

  • pay invoiced service fees to self-employed people, umbrella companies, partnerships or other corporate service providers. 

  • operate as a body such as an umbrella company or a managed service company and carry out payroll functions for employees who are working on assignments for an end-user client. 

  • provide recruitment or human resources management services and carry out payroll functions as a small part of the main business activity (for example, an employment business that supplies or manages temporary or contract workers). 

Customs practitioners 

Customs practitioners, freight forwarders or similar, are not covered by MLR 2017 and so are not required to register if they only provide the following services: 

  • helping clients with classifying or valuing exports and imports for customs purposes. 

  • helping clients to comply with customs and other procedures, for example, using simplified declaration procedures or facilities such as warehousing. 

  • helping clients with import or export licensing and submitting import and export declarations on their behalf. 

  • paying duties, taxes and levies on behalf of importers.


Virtual assistants 

Virtual assistants who only provide a small amount of accountancy services do not need to register if all the following applies: 

  • virtual assistant is the main business activity. 

  • The annual business turnover is less than £30,000. 

  • no more than 5% of the total business turnover applies to accountancy service activities. 

  • the accountancy services provided support the main business. 

  • there is no other business activity the business needs to register for under money laundering regulations. 

  • All accountancy service work is reviewed by an accountant or bookkeeper who is registered for money laundering supervision. 

 

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)