Small AML firms get £500 refund only after acceptance

Small businesses supervised by HMRC for anti-money laundering purposes now receive the £500 small-business refund only when their registration application is acceptedGOV. Businesses with turnover below £5,000 claiming the reduction must still pay the full £300 application feeGOV and the £400 premises fee for registration upfrontGOV, and the £500 refund follows only acceptance of the applicationGOV. For each later annual declaration, they pay the £400 premises feeGOV and receive a £200 refundGOV. The previous wording gave the £500 refund when either the application or the annual declaration had been acceptedGOV; the annual declaration no longer triggers the £500 payment.

The standard fee structure around that change is unchanged. Registration for anti-money laundering supervision carries a one-off £300 registration fee that is non-refundable, with businesses whose registration was withdrawn or cancelled paying it again on reapplication; this £300 fee is described as waived for businesses eligible for the small business reduction, alongside the pay-then-refund mechanics set out for those businesses. The premises registration fee is £400 for each premises included in the application, and the annual declaration fee is £400 for each premises shown on the application, with cancellation possible where the annual fee is paid late. Fees are calculated and paid on a new application and on completion of the annual registration.

Premises movements keep their existing treatment. Adding premises in the first six months of the year costs the full fee for each premises, adding in the second six months costs half the fee for each premises, and removing a premises brings no refund. Where HMRC refuses registration, it may refund the premises fee on seven stated grounds: the business is out of scope of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, it is already supervised by a professional body, it did not supply all information needed, it did not pay all associated fees, a beneficial owner, officer or manager failed the fit and proper test or approval check, it applied as the wrong legal entity, or it withdrew before registration.

Person-based checks carry their own charges. Money service businesses and trust or company service providers pay a non-refundable £500 fit and proper test fee for each person tested. Beneficial owners, officers or managers in accountancy services, art market participation, estate agency, high value dealing and letting agency pay a non-refundable £40 approval-process charge for each person tested for relevant criminal convictions.

Claiming the small-business reduction remains a pay-first, email-after process. After paying for and submitting the application, the business contacts AMLS.Fees@hmrc.gov.ukGOV with 'Turnover Reduction' in the subject lineGOV, giving its anti-money laundering supervision registration number and either the previous year's turnover where trading for more than 12 months or anticipated turnover for a new business. HMRC checks the information and may ask for more; it cannot process the application until full payment is made, and once it has the required information and has approved the application or annual declaration it aims to process the refund within 30 days. Payment runs through the online service, which works out the total, using a 12-digit, two-letter reference starting with X; a wrong reference delays payment and can divert it to a different tax bill, with MLRCIT@hmrc.gov.uk the route for a missing reference.

Legal basis is the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 and HMRC's money laundering supervision registration-fees guidance.