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Do you need to register for Economic Crime Levy?

9 May 2024

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

The Economic Crime Levy applies to businesses already regulated for anti-money laundering purposes.

If your business has a UK revenue of £10.2 million or more in a financial year, you must register. This applies if:

  • HMRC already regulates your business for anti-money laundering purposes.
  • A professional body regulates your business for anti-money laundering purposes.

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

Businesses should register for the Economic Crime Levy once and must submit a return and make a levy payment every year.

The amount businesses should pay is determined by 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 don’t need to pay the levy. However:

  • Medium entities should pay £10,000;
  • Large entities should pay £36,000; and
  • Very large entities should pay £500,000 from April 2024. The levy was previously £250,000 but 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.

If businesses carry out regulated activities for only part of the financial year, they may reduce the amount due for the levy.

Source: HM Revenue & Customs Mon, 06 May 2024 00:00:00 +0100

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