Do you need to register for Economic Crime Levy?

Posted on 6th May 2024 by Streets HMRC notices


Image to represent Do you need to register for Economic Crime Levy?

The Economic Crime Levy is a levy that applies to businesses that are already regulated for anti-money laundering purposes.

Your business must register if your UK revenue is £10.2 million or more in a financial year and:

  • Your business is already regulated by HMRC for anti-money laundering purposes.
  • Your business is regulated by a professional body for anti-money laundering purposes.

The financial year runs from 1 April to 31 March of the following year. Not all entities have to register and submit a return - it depends on the identity of their collection authority.

Businesses only need to register for the Economic Crime Levy once but are required to submit a return and pay the levy on an annual basis.

The amount businesses need to pay depends on their UK revenue for the financial year.

There are four size bands:

  • small entities (less than £10.2 million in UK revenue);
  • medium entities (between £10.2 million and £36 million in UK revenue);
  • large entities (between £36 million and £1 billion in UK revenue); and
  • very large entities (over £1 billion in UK revenue).

Small entities do not need to pay the levy, however:

  • medium entities must pay £10,000;
  • large entities must pay £36,000; and
  • very large entities must pay £500,000 from April 2024. The levy was previously £250,000 but was increased as part of the recent Spring Budget measures. As is currently the case, payments for 2024-25 will be due in the following financial year. No other changes to the levy were announced.

The amount due for the levy may be reduced if businesses carry out regulated activities for only part of the financial year.


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The content produced and presented by Streets is for general guidance and informational purposes only. It should not be construed as legal, tax, investment, financial or other advice. Furthermore, it should not be considered a recommendation or an offer to sell, or a solicitation of any offer to buy any securities or other form of financial asset. The information provided by Streets is of a general nature and is not specific for any individual or entity. Appropriate and tailored advice or independent research should be obtained before making any such decisions. Streets does not accept any liability for any loss or damage which is incurred from you acting or not acting as a result of obtaining Streets' visual or audible content.

Information

The content used by Streets has been obtained from or is based on sources that we believe to be accurate and reliable. Although reasonable care has been taken in gathering the necessary information, we cannot guarantee the accuracy or completeness of any information we publish and we accept no liability for any errors or omissions in material. You should always seek specific advice prior to making any investment, legal or tax decisions.


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