Following a phonecall from HMRC to confirm that I was complying with the MLR regulations etc, I have today received a letter advising that as I form companies on behalf of clients through Companiesmadesimple then I should also be registered as a TCSP and pay an additional £50.00 fee together with completion of a form MLR101.
I had no idea about this and I wonder if it is correct or have I been very lax in not understanding my obligations. If the latter and I register immediately am I likely to incur any penalty?
Many thanks.
Replies (3)
Please login or register to join the discussion.
TCSP
The key question is whether you are a 'TCSP' (Trust or Company Service Provider). This is defined by Regulation 3(10) MLR 2007.
(10) “Trust or company service provider” means a firm or sole practitioner who by way of business provides any of the following services to other persons —
(a) forming companies or other legal persons;
(b) acting, or arranging for another person to act —
(i) as a director or secretary of a company;
(ii) as a partner of a partnership; or
(iii) in a similar position in relation to other legal persons;
(c) providing a registered office, business address, correspondence or administrative address or other related services for a company, partnership or any other legal person or arrangement;
(d) acting, or arranging for another person to act, as —
(i) a trustee of an express trust or similar legal arrangement; or
(ii) a nominee shareholder for a person other than a company whose securities are listed on a regulated market,
when providing such services.
Perhaps you were asked, "Do you form companies for clients?". If you answered, "Yes" then HMRC will treat you as a TCSP.
However I would question whether you do form companies for clients or whether you simply arrange for clients to have companies formed for them by a company formation agent.
So have another think about whether you are a TCSP. If you are, then you do need to complete the additional form and pay the additional fee.
If you consider, on reflection, that you are not a TCSP then contact HMRC again for them to reconsider the point.
David
I don't
Admittedly my attitude to this MLR stuff is it is just another cynical money-making scheme for HMRC. I have 122 clients, 1 is high risk due to international business activities and I have ML reviewed him to death. As far as I am concerned that should be that.
But of course it isn't, I need to do the Jobsworthy drivel for the other 121 as well. No way am I going to pay anything above the absolute minimum, which is what I do pay.