HMRC: New AML Supervision Fees Detailed for UK Businesses

• HMRC charges a non-refundable £300 registration fee for anti-money laundering supervision, plus £400 per premises.
• An annual declaration fee of £400 per premises is required, with non-payment risking registration cancellation.
• Specific entities like Money Service Businesses face additional non-refundable fees for fit and proper tests (£500 per person) and approval tests (£40 per person).
• Businesses with under £5,000 turnover can apply for an HMRC small business reduction, receiving a £500 refund initially and a £200 refund annually.
• Accurate payment references are crucial, and full payment is required before any small business reduction refund is processed.

Lawyers and compliance officers advising businesses must ensure their clients are fully aware of these specific requirements to maintain valid registration and avoid severe penalties.

Businesses operating under anti-money laundering regulations in the UK must register with HMRC for supervision, incurring specific HMRC AML supervision fees from the outset. These fees were updated on 1 December 2025. A mandatory, non-refundable registration fee of £300 is required for all new applicants. This one-off payment is also levied on entities that have previously had their registration withdrawn or cancelled and subsequently reapply for supervision, unless they qualify for a small business reduction.

Beyond the initial registration, a premises fee of £400 is charged for each location included in the application. Should HMRC decline an application, a refund of the premises fee may be possible under certain conditions. Understanding these initial money laundering regulations registration fees is crucial for compliance officers and legal advisors to accurately budget for UK AML compliance costs.

Maintaining valid supervision necessitates an annual declaration, which also carries a fee of £400 per registered premises. HMRC will notify businesses via email towards the end of their registration year to prompt the update of their details and payment of this annual charge. Failure to remit the annual declaration fee in a timely manner can lead to the cancellation of a business's registration.

Adjustments to registered premises throughout the year also incur additional HMRC anti-money laundering fees. Adding new premises within the first six months of a registration year requires the full £400 fee per location, while additions made in the latter half of the year are subject to a reduced fee of £200 per premises. It is important to note that no refund is issued if a business removes a premises from its registration.

Furthermore, specific sectors face additional assessment costs. Money Service Businesses and Trust or Company Service Providers must pay a non-refundable fit and proper test fee HMRC of £500 for each individual undergoing this assessment. Similarly, relevant beneficial owners, officers, or managers in certain regulated sectors are subject to a non-refundable approval test fee of £40 per person, designed to check for pertinent criminal convictions.

To alleviate the financial burden on smaller entities, HMRC offers a small business reduction for those with an annual turnover below £5,000. While eligible businesses must initially pay the full £300 application fee and £400 premises fee, a refund of £500 is issued once their initial application is accepted. For subsequent annual declarations, these businesses will pay the £400 premises fee and then receive a £200 refund.

To apply for this HMRC small business reduction AML, businesses must email AMLS.Fees@hmrc.gov.uk after submitting their paid application, including 'Turnover Reduction' in the subject line and providing their business name, UTR, and registration number. HMRC will verify the information and may request additional documentation. Refunds are typically processed within 30 days of approval and receipt of all necessary details, but full payment of the initial fees is a prerequisite for the reduction application to be processed.

All fees are calculated and paid through an online service during initial registration and annual declarations. It is critical to record the 12-digit, two-letter payment reference (starting with 'X') provided, as using an incorrect reference will delay payment processing. Should a payment reference be misplaced, it can be requested by emailing MLRCIT@hmrc.gov.uk before making a payment.

Adherence to the prescribed fee schedule and payment deadlines is paramount for businesses subject to anti-money laundering supervision. The non-refundable nature of several fees, coupled with the potential for registration cancellation due to unpaid annual charges, underscores the importance of diligent financial management.

Lawyers and compliance officers advising businesses must ensure their clients are fully aware of these specific requirements to maintain valid registration and avoid severe penalties. Timely payment of all HMRC AML supervision fees is not merely a procedural step but a fundamental aspect of ongoing regulatory compliance.

Lawyers and compliance officers advising businesses subject to UK anti-money laundering regulations must be aware of the specific fee structure, payment deadlines, and potential for small business reductions imposed by HMRC to ensure their clients maintain valid registration and avoid penalties or cancellation of supervision.

Source: Original reporting via GOV.UK guidance