Government regulations mean you may be asked to provide evidence of your identity if you are a new client or if you are requesting us to undertake activities you have not previously requested.
WHY ARE IDENTIFICATION CHECKS NECESSARY?
Identification checks are a necessary of combatting the threat of money laundering, which costs the UK economy billions of pounds each year. Money laundering is a serious offence and is linked to other violent and organised crime.
Financial and professional businesses, including accountants, banks and solicitors are targeted by money launderers (criminals who hide stolen money by turning it into legitimate income) because of the cloak of respectability they give to illicit finance.
The government has introduced resources:
- to make it more difficult for criminals to make and keep money from their crimes;
- to confiscate the proceeds of crime.
We must make compulsory checks, including verifying identification of our clients. Being asked for identification does not mean you are under suspicion. The identification requirements apply to all clients (new and existing) when they are asking us to conduct business on their behalf.
HOW DOES THIS AFFECT YOU?
This means you will have to show us some personal documents that prove your identity and address. Some forms of approved ID include:
Proof of Identity
- Current signed passport
- Current photocard driving licence
- National ID card
Proof of Address
- Recent utility bill (not mobile phone bill)
- Council Tax bill
- Credit Card statement
- Recent Mortgage Statement from a recognised lender
AIA requires its Members in Practice to adhere with government legislation and regularly monitors its supervised population to ensure compliance. This includes monitoring due diligence processes and members must provide evidence they have requested this information.
Making sure you are compliant with the UK's ever changing tax legislation is not a simple task. With the taxpayer's cooperation, however, it is achievable. HMRC may open a compliance check (also known as tax enquiry, investigation, assurance visit or inspection) into individuals and businesses tax affairs to make sure they are paying the right amount of tax. Put simply, it is a formal investigation into your tax affairs to make sure you are meeting your tax responsibilities.
WHAT IS TAX COMPLIANCE?
Tax compliance is the taxpayers' decision to comply with tax laws and regulations by paying taxes timely and accurately. However, there is much more to it than submitting your annual tax return and paying it on time.
WHAT HMRC CAN CHECK?
They may wish to check any taxes you pay; including but not limited to, your accounts and tax calculations, your Self Assessment tax return, your Company Tax Return, or your PAYE records and returns, if you employ people.
TOOLS AND GUIDANCE FOR BUSINESSES
SELF-EMPLOYMENT (SOLE TRADER)
If you start working for yourself, you are classed as a sole trader even if you have not yet told HMRC. Not sure if you are self-employed? Use the HMRC's Check Employment Status for Tax (CEST) tool to find out if you, or a worker on a specific engagement, should be classed as employed or self-employed for tax purposes.
HMRC is the UK’s tax, payments and customs authority, and they have a vital purpose: they collect the money that pays for the UK’s public services and help families and individuals with targeted financial support.
The Companies Act 2006, sets out the general duties of company directors in the UK.
171 Duty to act within powers
A director of a company must—
(a) act in accordance with the company's constitution, and
(b) only exercise powers for the purposes for which they are conferred.
172 Duty to promote the success of the company
(1) A director of a company must act in the way he considers, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to—
(a) the likely consequences of any decision in the long term,
(b) the interests of the company's employees,
(c) the need to foster the company's business relationships with suppliers, customers and others,
(d) the impact of the company's operations on the community and the environment,
(e) the desirability of the company maintaining a reputation for high standards of business conduct, and
(f) the need to act fairly as between members of the company.
(2) Where or to the extent that the purposes of the company consist of or include purposes other than the benefit of its members, subsection (1) has effect as if the reference to promoting the success of the company for the benefit of its members were to achieving those purposes.
(3) The duty imposed by this section has effect subject to any enactment or rule of law requiring directors, in certain circumstances, to consider or act in the interests of creditors of the company.
173 Duty to exercise independent judgment
(1) A director of a company must exercise independent judgment.
(2) This duty is not infringed by his acting—
(a) in accordance with an agreement duly entered into by the company that restricts the future exercise of discretion by its directors, or
(b) in a way authorised by the company's constitution.
174 Duty to exercise reasonable care, skill and diligence
(1) A director of a company must exercise reasonable care, skill and diligence.
(2) This means the care, skill and diligence that would be exercised by a reasonably diligent person with—
(a) the general knowledge, skill and experience that may reasonably be expected of a person carrying out the functions carried out by the director in relation to the company, and
(b) the general knowledge, skill and experience that the director has.
175 Duty to avoid conflicts of interest
(1) A director of a company must avoid a situation in which he has, or can have, a direct or indirect interest that conflicts, or possibly may conflict, with the interests of the company.
(2) This applies in particular to the exploitation of any property, information or opportunity (and it is immaterial whether the company could take advantage of the property, information or opportunity).
(3) This duty does not apply to a conflict of interest arising in relation to a transaction or arrangement with the company.
(4) This duty is not infringed—
(a) if the situation cannot reasonably be regarded as likely to give rise to a conflict of interest; or
(b) if the matter has been authorised by the directors.
(5) Authorisation may be given by the directors—
(a) where the company is a private company and nothing in the company's constitution invalidates such authorisation, by the matter being proposed to and authorised by the directors; or
(b) where the company is a public company and its constitution includes provision enabling the directors to authorise the matter, by the matter being proposed to and authorised by them in accordance with the constitution.
(6) The authorisation is effective only if—
(a) any requirement as to the quorum at the meeting at which the matter is considered is met without counting the director in question or any other interested director, and
(b) the matter was agreed to without their voting or would have been agreed to if their votes had not been counted.
(7) Any reference in this section to a conflict of interest includes a conflict of interest and duty and a conflict of duties.
176 Duty not to accept benefits from third parties
(1) A director of a company must not accept a benefit from a third party conferred by reason of—
(a) his being a director, or
(b) his doing (or not doing) anything as director.
(2) A “third party” means a person other than the company, an associated body corporate or a person acting on behalf of the company or an associated body corporate.
(3) Benefits received by a director from a person by whom his services (as a director or otherwise) are provided to the company are not regarded as conferred by a third party.
(4) This duty is not infringed if the acceptance of the benefit cannot reasonably be regarded as likely to give rise to a conflict of interest.
(5) Any reference in this section to a conflict of interest includes a conflict of interest and duty and a conflict of duties.
177 Duty to declare interest in proposed transaction or arrangement
(1) If a director of a company is in any way, directly or indirectly, interested in a proposed transaction or arrangement with the company, he must declare the nature and extent of that interest to the other directors.
(2) The declaration may (but need not) be made—
(a) at a meeting of the directors, or
(b) by notice to the directors in accordance with—
(i) section 184 (notice in writing), or
(ii) section 185 (general notice).
(3) If a declaration of interest under this section proves to be, or becomes, inaccurate or incomplete, a further declaration must be made.
(4) Any declaration required by this section must be made before the company enters into the transaction or arrangement.
(5) This section does not require a declaration of an interest of which the director is not aware or where the director is not aware of the transaction or arrangement in question.
For this purpose a director is treated as being aware of matters of which he ought reasonably to be aware.
(6) A director need not declare an interest—
(a) if it cannot reasonably be regarded as likely to give rise to a conflict of interest;
(b) if, or to the extent that, the other directors are already aware of it (and for this purpose the other directors are treated as aware of anything of which they ought reasonably to be aware); or
(c) if, or to the extent that, it concerns terms of his service contract that have been or are to be considered—
(i) by a meeting of the directors, or
(ii) by a committee of the directors appointed for the purpose under the company's constitution.
Extracted from Companies Act 2006 UK Public General Acts 2006 c. 46 Part 10 Chapter 2 The General Duties.
Disclaimer: The information and opinions provided on this website are for general information purposes only and are not intended to constitute professional advice. XCOUNTANT COMPANY LTD is a company registered in England and Wales.
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