I retired 10 years ago, but still help a few friends and relations with their Tax Returns and other tax affairs. I've never charged them (before or after retirement), but they always want to pay something and I direct them to my favourite charity. Some actually give me the cash which I always pocket while transferring a like amount from my bank account to the the charity. We always enter my contact details on their tax returns as 'Tax Adviser'.
I've never declared any income from this activity, but have now received a notification from HMRC saying that they will be writing at some future stage requiring me to complete a Tax Return (I haven't needed to do one for three or four years). I'm wondering whether my name appearing in the 'Tax Adviser' section of several people's Tax Returns without any corresponding income reported by me has triggered an HMRC enquiry. Or have HMRC simply mass-mailed everybody who gets over 1,000 Pounds a year in bank interest, now paid without tax deduction, warning them they'll have to complete ITRs in future? Am I being paranoid?
Related resources
Replies (3)
Please login or register to join the discussion.
Probably not - but are you registered under the ML Regulations as one who performs accounting services (an ASP)?
May well not be necessary:
"Carrying out an activity ‘by way of business’
In most cases you’ll know whether you’re carrying out a relevant activity by way of business but there may be some circumstances where you might not be sure. If you already know that you are in business you do not need to consider this any further.
If you are unsure you’ll need to consider if you:
advertise or publicise your business activity, or receive referrals from other businesses
aim to make a profit when you carry out this activity
carry out the activity with reasonable or recognisable continuity
If you do all of these things then you are carrying out the activity by way of business and you need to register with HMRC.
If you don’t do any of these things then you aren’t carrying out the activity by way of business and you don’t need to register with HMRC."
https://www.gov.uk/guidance/money-laundering-regulations-accountancy-ser...
Thank you, and no, I'm not registered. I don't advertise, don't seek or want business and don't bill those pals who ask my help, and I certainly don't make a profit. I've allowed my name to go in their tax returns as 'Tax Adviser' simply because I'm more likely than they are to be able to understand and deal with any queries from HMRC.