HMAG30070 - Registration and approval: approval process overview

Deciding whether to grant or refuse the application 

A decision to approve or refuse approval must be supported by evidence and be reasonable and proportionate to those facts.  Where the application is for a revenue trader approval the applicant must be fit and proper as described in this guidance. Similarly, only where the warehouse premises meet the required standards should the premises approval be granted.  

However, in many cases the decision will not be so clear cut. Risks may have been identified that casts doubt over compliance, but these on their own may not be sufficient to support refusal of the application. In such cases consideration should be given to whether these can be mitigated by conditions or restrictions on the approval. 

Refusing and withdrawing an application for approval/authorisation 

A decision to refuse or remove an approval must be reasonable, proportionate and defendable.  It must be supported with good evidence.  The main reasons for refusing an application for a revenue trader approval under CEMA section 100g is the person is not fit and proper to hold the approval. For example: 

  • the person has not met an approval requirement published in public notices 196 and 197, 
  • key employees have been involved in significant revenue non-compliance or fraud in excise or other HMRC regimes, 
  • false information has been provided with the intention to deceive,  
  • the person has an unspent conviction for fraud, 
  • the person has a proven link with other known non-compliant or fraudulent businesses, 
  • the proposed business is not credible and commercially viable, 
  • there isn’t a genuine business need for the approval, or 
  • there are significant outstanding debts with HMRC with time to pay arrangements not being met. 

In the case of an application for warehouse premises approval reasons for refusal include: 

  • the intending occupier is not fit and proper to be approved as a warehouse-keeper, 
  • false information was provided with the intention to deceive, 
  • the premises are not secure, 
  • there are significant health & safety risks with the premises, 
  • not all information has been provided for example, a satisfactory health & safety risk assessment when one is required, 
  • there is no genuine trade need for the warehouse, 
  • premises are unsuitable for the intended trade need/operations, 
  • if the application is for a general storage and distribution warehouse there is no convincing evidence of an economic need for it, 
  • financial security (when required) is not provided, 
  • record, accounting, and other necessary IT (Information Technology) systems do not meet an acceptable standard, 
  • key persons involved in the management of the premises represent an unacceptable revenue risk