September 8 2023

Tax Authority Clarifies Economic Crime Levy Elements, Enforcement

Source: IBFD Tax Research Platform News

The UK tax authority, His Majesty's Revenue and Customs (HMRC), has published its Economic Crime Levy Manual. The manual provides background information and an overview of the levy, guidance on the terms and definitions used in the legislation, and other matters such as enforcement and penalties for non-compliance.

The Economic Crime Levy is an annual charge for organizations that are supervised under the Money Laundering Regulations with UK revenue exceeding GBP 10.2 million a year. The levy charged depends on the organization's annual turnover. Firms with a turnover below GBP 10.2 million are not liable. Medium-sized firms pay GBP 10,000 a year, large firms pay GBP 36,000 and very large firms pay GBP 250,000.

The first charge relates to the accounting period ending in the financial year lasting until 31 March 2023 and the first payment of the levy is due on 30 September 2023. Information on registering for the levy and links to other information can be found here.

Link to the legislation: The Economic Crime (Anti-Money Laundering) Levy (Amendment) Regulations 2023.