ECSH44382 - The registration process: approvals checks

What is the approval check?

Approval checks are conducted by HMRC to ensure that an applicant, and its beneficial owners, officers and managers (BOOMs) are suitable people to carry out those roles.

BOOMS of the sectors below must undergo an approval check and pay the business must pay the relevant fee: 

  • Art Market Participant (AMP)
  • Accountancy Service Provider (ASP)
  • Estate Agency Business (EAB)
  • High Value Dealer (HVD)
  • Letting Agency Business (LAB)

A business may trade whilst the approval check(s) are outstanding but will not be added to HMRC’s register of supervised businesses until its application has been approved.

What is checked?

Authorisations caseworkers will contact Risk and Intelligence Service (RIS) to request a check of a business and its BOOM’s criminal record. If an unspent Schedule 3 conviction is identified, the business or BOOM must fail the approval check. Further guidance on Schedule 3 convictions is available in ECSH45025.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

 

Outcomes of approvals check

  • If the business passes the approvals check the caseworker will approve the application. The relevant person will receive a secure communication via its government gateway account to advise that its registration has been approved.


  • If a sole proprietor fails the approvals check the caseworker will refuse the application on and write to the sole proprietor explaining that their application has been refused.


  • If a BOOM who is applying as part of a firm fails the approvals check the caseworker may refuse the application and write to the applicant explaining that their application has been refused. Caseworker discretion can be applied, and the applicant can be issued with an intention to refuse letter requiring the BOOM be removed from the business’ registration, otherwise its registration will be refused.