Do I need to make a money laundering report?

Do I need to make a money laundering report?

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We have a client who is over the VAT limit ( approx £300k of turnover) but not VAT registered.  They were registered for VAT but deregistered when a friend who operates in the same industry said that he was no longer VAT registered due to this little loop hole.  The client asked if we knew anything about it which at the time I did not.  I offered to look into it for them but she said no worries and dealt with it all herself.

I've since looked at this and believe she was wrong to deregister and have told her verbally and written a letter to let her know what our thought on this are.  She still says that she is happy with the rules and that she is right.  She says that she gave all the info to HMRC at the time and they accepted the deregistration, which to me doesn't really prove anything.

Do we need to report this or is there no crime committed as she feels that she is correct, or saying she is correct as she is too scared to own up?

Replies (5)

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By tonyh
14th Feb 2014 16:01

My opinion

In my opinion if you are sure she is wrong and refuses to accept your advice you have to both resign and fill in MLR.

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By andy.partridge
14th Feb 2014 16:15

It might help to know

What was the loophole?

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By Roland195
14th Feb 2014 16:30

Difference of opinion

I am not so sure that a technical disagreement does constitute grounds for a Money Laundering report especially with regards to complex VAT issues. I have been involved with cases before where I was almost certain registration was required but my chosen VAT specialist proved me wrong (thankfully before I'd opened my mouth to the client). 

It may come down to if you believe that the client is acting in good faith - she genuinely believes her position to be correct. If this is the case, no crime is being committed.  

 

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Replying to Tim Vane:
By djn24
21st Feb 2014 11:10

No reprort

Roland195 wrote:

I am not so sure that a technical disagreement does constitute grounds for a Money Laundering report especially with regards to complex VAT issues. I have been involved with cases before where I was almost certain registration was required but my chosen VAT specialist proved me wrong (thankfully before I'd opened my mouth to the client). 

It may come down to if you believe that the client is acting in good faith - she genuinely believes her position to be correct. If this is the case, no crime is being committed.  

 

 

Just noticed that I had replies, sorry for the delay in coming back!

I believe she was acting in good faith so i suppose no crime was committed. I think I'll go down the route of no report.  Thank you.

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Replying to nickpick:
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By Roland195
21st Feb 2014 11:44

Just my opinion

djn24 wrote:

Roland195 wrote:

I am not so sure that a technical disagreement does constitute grounds for a Money Laundering report especially with regards to complex VAT issues. I have been involved with cases before where I was almost certain registration was required but my chosen VAT specialist proved me wrong (thankfully before I'd opened my mouth to the client). 

It may come down to if you believe that the client is acting in good faith - she genuinely believes her position to be correct. If this is the case, no crime is being committed.  

 

 

Just noticed that I had replies, sorry for the delay in coming back!

I believe she was acting in good faith so i suppose no crime was committed. I think I'll go down the route of no report.  Thank you.

Please be aware this is just my opinion.

 

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