The annual fee for businesses registered under the Money Laundering Regulations 2007 will remain at £120 per premise for the year 2010 – 2011. HMRC are pleased to be able to provide early confirmation of next year’s fee level as they are aware that many larger businesses appreciate as much notice as possible to help in their financial planning.
Introduced in 2002, the fee was initially set at £100, and was subsequently reduced to £60 from June 2003. There were no changes until 1 June 2007, when the fee was increased to £95; this level was maintained in 2008, and increased to £120 in 2009.
#1 by Mrs S Bowers on November 21st, 2009 - 18:13
This £120 annual fee is outrageous for me who provides book-keeping and payroll services for five small local businesses. My turnover is less than £7,000 pa and £120 is 14 hours unpaid work! The fee should be a percentage of turnover. I will probably cease trading next year because of this and suggest to my clients that if they still want my services that they employ me.
#2 by Steve Norris on May 24th, 2010 - 11:32
According to HMRC, registration can be required even before you start trading as an Accounting Services Provider.
Whilst I understand the need for ML measures, it is grossly unfair to charge the very people who the HMRC expect to help them, by charging us a fee at all. Do we get commission on cases we expose?
Once again it seems that small business is being hammered in the interests of the beaurocrats generating departmental revenues.
Surely we can register with just a nominal fee and do our bit without financing it?
#3 by BTC on May 25th, 2010 - 14:40
@Steve Norris
I understand your concerns about the cost of supervision, my concern is the flat rate fee, whether it is HMRC or the ICAEW for example, does not really reflect the size of the firm being supervised. You may have the situation where a small bookkeeper with a £2k turnover pays the same fee as a larger tax firm with a £1m turnover firm.
When it comes to penalties it is a different matter, the formula for calculating penalties takes into account the number of clients and the turnover of the business, therefore the larger the firm, in theory, the larger the penalty.