What are accountancy services?

HMRC told the taxpayer company it should be registered as an accountancy services provider under the Money Laundering Regulations 2007.  The business agreed to sign up under protest and the Revenue issued a £500 lateness penalty on the ground the taxpayer should have registered before it began trading.

The company appealed saying it did not provide accountancy services but was concerned only with payroll computations. It did not offer professional advice in relation to tax or other matters.

The First-tier Tribunal said it was necessary to define the meaning of accountancy services. The ordinary definition was narrower than pure bookkeeping data processing or carrying out calculations without professional skill.

Someone who offered accountancy services would be distinguished from bookkeepers because of the professional nature of the services and the extra levels of expertise required. The term “accountant” meant a person who “exercises some degree of professional...