The way HMRC charges fees to companies supervised under the Money Laundering Regulations is set to change following feedback from a recent consultation.
The changes will mean that fees can be settled from 1st April 2015.
Given the widespread support for option 3 (which will distribute the fees where the costs fall, so costs are more directly recovered from the businesses that generate mandatory activity) the tax authority will introduce the new arrangement later this year.
New applicants that register before this date will still be processed under existing guidelines.
A number of measures are being taken by HMRC to ensure that option 3 is implemented, such as retaining the current “per premises” registration fee for new businesses and those renewing in 2015, with an increase of £5 for 2016 –17.
Other measures being introduced include a non-refundable processing fee of £100 for businesses applying to register for the first time, increasing the “fit and proper person’s test” fee from £50 to £100 per test, and removing the transitional cap on the fee owed by estate agency businesses that operate in more than 20 premises.
The majority of respondents wanted the premises cap paid by estate agency firms (with more than 20 premises) to be removed, to ensure smaller businesses are not subsidising the registration and supervision of larger ones.
The consultation highlighted that most respondents wanted the current level of premises fee to be maintained at £110, which has also been taken into account with option 3.