ECSH52525 - Introduction
Source: gov.uk (2025-10-28)


What is an Accountancy Service Provider (ASP)?

Regulation 11 of The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017) “Auditors and others” defines firms and individuals that are collectively known as Accountancy Service Providers (ASPs).

An ASP is anybody who, as a firm or sole practitioner, provides accountancy services, provides tax advice to others, or fills the role of an insolvency practitioner or statutory auditor by way of business. (https://www.gov.uk/hmrc-internal-manuals/economic-crime-supervision-handbook/ecsh42500) It does not include employees who perform these services for their own employer, for example a business’s in-house accountant or payroll department.

Accountancy services are recording, reviewing, analysing, calculating and/or reporting on financial information for other people. This includes:
- Bookkeeping.
- Accounts preparation.
- Payroll services.
An amendment to regulation 11(d) MLR 2017 from 10 January 2020, changed the definition of “tax adviser” to become wider in scope. The updated definition captures more firms that would not have previously met the definition of tax adviser. For the purposes of MLR 2017, from 10 January 2020, tax advice means providing material aid, or assistance or advice in connection with the tax affairs of other persons. This includes, but is not limited to:
- Help in completing and submitting tax returns, duty claims or tax repayment claims.
- Advising whether something is liable to a tax or duty.
- Advising on the amount of tax or duty that is payable.
Some accountants and tax advisers specialise in getting tax repayments for customers and are known in HMRC as High-Volume Repayment Agents (HVRAs). More information can be found at ECSH52700. (https://www.gov.uk/hmrc-internal-manuals/economic-crime-supervision-handbook/ecsh52700)

An Insolvency Practitioner is someone licensed and authorised to act in relation to an insolvent individual, partnership or company. They are often accountants themselves. Insolvency practitioners are supervised for anti-money laundering (AML) purposes by the Professional Body Supervisor who regulates their insolvency activity. As HMRC does not regulate insolvency activity, no insolvency practitioners are supervised for AML purposes by HMRC.

Auditors are professional persons qualified to conduct local or statutory audits. Whilst HMRC supervises a small number of auditors, they are typically supervised by one of the Professional Body Supervisors.

Although it is possible to break down the functions of an ASP into several distinct activities, some ASPs will perform several of these functions. For example, an accountant may provide tax advice, payroll services and bookkeeping in addition to accountancy. Some businesses however specialise in just one activity, and that is frequently the case with bookkeepers.

In addition, the actual work of an ASP is determined by the services that a customer requires. A sole trader customer with little or no accountancy skills may require a full range of services from an ASP. On the other hand, a customer who is a substantial business may have its own in-house accounting department which carries out the bookkeeping, operates the payroll and files its own VAT returns. It might only require the service of an ASP to prepare its annual accounts and submit its tax return to HMRC.

Relevant activity as an ASP will in most cases arise out of the ASP’s business through the provision of a service to their customer which has an element of duration. Therefore, they will commonly establish business relationships with their customers. An occasional transaction with a customer is uncommon for an ASP.

Types of ASP

The following is a list of types of ASP:
- ‘One-stop shop’ accountants who provide a suite of services to customers.
- Auditors who carry out statutory audit work.
- Tax advisers who provide advice to customers about their tax affairs either directly or indirectly.
- External bookkeepers.
- Payroll agents.
- Any business that provides accountancy or tax services, but may not necessarily label itself as a tax advisor or accountant. Businesses involved in recording, reviewing, analysing, calculating and reporting on financial information for other people may fall into the definition of an ASP. Businesses providing advice or assistance that has a tax consequence either directly or indirectly may also fall into the definition of an ASP even if the advice/assistance is ancillary to or part of a broader process in their main business activity.
Examples include, but are not limited to:
- Businesses that claim tax repayments for other people. This includes high value repayment agents (HVRAs) that submit large amounts of claims to HMRC on behalf of their clients for tax rebates/refunds.
- Businesses that submit tax returns for other people.
- Businesses that offer services which consider (or contribute to the consideration of) whether and/or how much tax may be due in individual circumstances.
- Customs practitioners and freight forwarders that may provide these services as part of their business operations.