Was a company a tax adviser for MLR purposes?

Online Tax Rebate helped employees claim flat rate reliefs such as for laundering uniform to which they may not have known they were entitled to unclaimed tax relief. It contacted them through its website but also by direct mail. 

The company’s system generated a ‘tax claim and deed of assignment’ which employees sent to HMRC. If a repayment was due HMRC sent it to the company which deducted a fee and paid the balance to the employee.

HMRC considered the company was a tax adviser for the purpose of the Money Laundering Regulations 2007 and that it had failed to comply with the requirements to verify its customers’ identity. The department accepted the company’s business posed a low risk of money laundering or terrorist financing but imposed a £14 641 penalty.

The First-tier Tribunal reduced the penalty to £2 500 largely on the ground the company was low risk. The...