FHDDS33200 - Approval, revoking the approval and variations: revoking approval – policy: when approval is to be revoked

(The Fulfilment Businesses Regulations 2018, regulation 7)

Revocation will be appropriate where HMRC has evidence that the approved person can no longer be considered ‘fit and proper’ in line with the requirements set out at FHDDS31510.

Any revocation action taken must be for a reasonable cause, for example, where the:

• approval is no longer needed and the approved person has failed to notify us
• business no longer meets the fit and proper standards
• business fails to meet its obligations under the scheme - see Regulation 8
• business does not comply with any conditions or restrictions of approval.

Revocation of approval should be a last resort, where the application of penalties and other sanctions have not ensured compliance. If an officer is considering revoking a fulfilment business’s approval, it must first issue a ‘Minded to Revoke’ letter and follow the compliance process.

HMRC must issue a ‘Notice of Revocation’.

This Notice must state the date on which the revocation has effect (which must be after the date the Notice is issued - it is important that revocation does not take place on the same day) and the reasons why approval has been revoked.

HMRC may also vary the terms of approval - there is more information at FHDDS35400.

Letter templates can be found on SEES / Forms + Letters / Selected Categories / Local Compliance / +CITEX / Fulfilment House Due Diligence Scheme.