ECSH44775 - Refund of fees considerations

Introduction

There are certain instances where HMRC may need to consider if the anti-money laundering supervision fees paid by a business should be refunded. When determining if a refund of fees is due, authorisations caseworkers should consider the type of fee (annual premises fee, approval check fee or Fit and Proper test fee) and the reason that the business has requested a refund.


Annual Premises Fee

If an application to register is refused, the premises fees may be refunded if:

  • The business is out of scope of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017).
  • The business is already supervised by a professional body and does not require separate supervision by HMRC.
  • The business did not supply all the information needed (non-response to a Notice under regulation 57(3) MLR 2017).
  • The business did not pay all the fees associated with that application.
  • A beneficial owner, officer or manager (BOOM) of the business failed the fit and proper test or approval check and the application was not approved by HMRC.
  • The business has applied as the wrong legal entity.
  • The business withdraws its application before it is registered.

When refusing an application for registration, caseworkers should consider if a business has had the benefit of registration to determine if the premises fee should be refunded in full or if a partial refund is appropriate.

If an application to register is cancelled, the premises fees may be refunded if:

  • The business is out of scope of MLR 2017.
  • The business is already supervised by a professional body and does not require separate supervision by HMRC.
  • The business did not pay all the fees associated with that application.
  • The business has applied as the wrong legal entity.
  • The business de-registers, in certain limited circumstances (This content has been withheld because of exemptions in the Freedom of Information Act 2000).

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


Partial premises fee refunds

Businesses pay an upfront annual charge for 12 months of supervision by HMRC. If a business’ registration is refused or cancelled after this annual fee has been paid, and a refund is appropriate, HMRC may issue a partial refund to the business, based on the length of time that the business has been supervised by HMRC.

If a partial premises refund is due, the EC-S Finance team will calculate the appropriate refund.


Business dissolves, liquidates, becomes insolvent or ceases providing relevant activity

The annual premises fee will not be refunded to a business if it dissolves, goes into liquidation, becomes insolvent or ceases to provide relevant activity under MLR 2017.

 

Removal of premises

If a business removes a premises from its application/registration, the fee that it has paid for that premises will not be refunded.

 

Approval check fee

The approval check fee is non-refundable once an applicant has been tested.

If an application is withdrawn prior to the approval check being conducted, the approval check fee may be refunded to the business.

HMRC considers an approval check fee to be non-refundable once a Police National Computer (PNC) check has been requested.

 

Fit and proper test fee

The fit and proper test fee is non-refundable once an applicant has been tested.

In all other scenarios the fit and proper test fee is non-refundable.

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

When a BOOM is added to an existing registration, HMRC considers the fit and proper test fee to be non-refundable once Police National Computer (PNC) check has been requested.

 

Refunds if a penalty charge is outstanding

If an EC-S caseworker identifies that a financial penalty has been imposed on the business by EC-S and the business is yet to satisfy the outstanding penalty charge, no fees will be refunded to the business.

If an EC-S penalty charge is settled in full, a refund of any residual credit on the account may be considered.

If a caseworker informs the EC-S Finance team that a penalty charge is no longer appropriate, any credit on the account may be refunded.

 

There are some occasions where a credit on a customer account accrued from payments for anti-money laundering supervision may be allocated to offset other HMRC tax debts. The allocation request will be instigated by the other HMRC department or the EC-S Finance team.

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