bookkeepers to register with HMRC ??

[trackcar]

My Mum does my book-keeping, book-keeping is what she's done all her life.

In the latest magazine from the Federation of Small Businesses there's a small piece about now having to register with HMRC, fill out an apparently lengthy online form and also pay for the priviledge of keeping track of your own money in your own business .. now I've not seen anything official (it's a small letter from a couple of people at the end of one page in the magazine) but it seems to imply that unless your small-time book-keeper now registers with HMRC they wont be allowed to do your books.

Is this really the case? Is it yet another obstacle thrown in the path of small businesses and people trying to help them out? If you submit your books to your accountant who then files them does my book-keeper need to register with HMRC (after all her work is being chacked by the accountants who are already registered ..)? .. is it just another way of leeching money from businesses to cover shortfalls elsewhere?

Any comments welcome..

[Eric Mc]

Yes.

It's been a requirement since last November.

As the vast bulk of book-keepers are not qualified and do not belong to any professional institutes, they are completely unaware of this new legal requirement. Consequently, the vast bulk of book-keepers are now unknowingly breaking the law and are technically criminals.
These new rules are all part of the 2007 Money Laundering Regulations which are part of the latest anti-terror rules. Therefore, unregistered book-keepers could find themselves detained for up to 42 days. Isn't that nice .

When people say they have nothing to hide, I really despair. This government has created so many onerous regulations over the past few years that many people have plenty to hide, only they are so ignorant of all theses laws, they just don't realise it.


We're all criminals now.

And if you read the wording of the Accountant's Reports displayed on non-audited businesses (small limited companies, sole traders and partnerships) you will realise that accountants are verifying NOTHING about the records of the business to which the accounts relate. I am afraid that these book-keepers MUST register in their own right.

Edited by Eric Mc on Tuesday 17th June 11:36

[trackcar]

thanks for that Eric, much appreciated

[smartie]

She needs to register before 01/07/08 (and pay an annual £95 fee)so nothing done wrong, as yet. She does need to comply with currect money laundering regulations. This all only applies if she is charging for her bookkeeping duties (even if she only has one customer)

Search MLR100 (I think) on the HMRC website.

Edited by smartie on Tuesday 17th June 14:00

[Eric Mc]

I honestly cannot see what the need for this over regulation actually is.

I get the impression that once these government databases get so huge the information on them will be totally meaningless and they might as well not have bothered.

Regulation for regulation's sake.

[smartie]

Would it be too cynical to think the whole point here was the £95 fee?

[Eric Mc]

No - I would think you had a very valid point.

[Ade355]

Hum interesting, Id missed this.... what happens if you do your own books (as a director) or have an internal staff member who keeps records? I presume this is fine as you are not effectively an 'ASP'?

[Eric Mc]

Should be OK. An "internal" book-keeper would not need to register as long as they are "employees" of the organisation. If they are being treated as self employed, they are in business on their own account and must register.

[trackcar]

ah I think this is getting easier then ..

[Eric Mc]

Is she an employee then - and do you run payroll and account for PAYE on the satff, including directors?

[trackcar]

she's also the company secretary .. essentially the company is me but for a ltd company she stepped up as company secretary ..

[Eric Mc]

She's an officer of the company, so shouldn't have to notify HMRC as an ASP - unless she does other book-keeping and accounting work for other clients.

[Ade355]

Good news for the OP and a lot of small businesses - phewww. Thanks for the info !

Interestingly the HMRC website does state you should check your accountant (if external) is registered as an ASP, but you are not liable it seems if they dont register, but I guess HRMC would like to at least see some proof you checked... ?

[Eric Mc]

Whilst I always resent increased government intereference in day to day business affairs, the only silver lining on this cloud is that it might make businesses who use external accountants check up on the professional qualifications and capabilities of the people or firm they are using.