Economic Crime Levy – does your business need to pay?
Back in the 2024 Spring Budget the then Chancellor, Jeremy Hunt, announced a change to the Economic Crime Levy (ECL). In a nutshell, ‘very large’ businesses with UK revenue of more than £1 billion were charged a £500,000 levy for the financial year beginning 1 April 2024. This was a 100% increase from the former rate of £250,000. ‘Small’ entities remained exempt from the charge. ‘Medium’ entities continued to pay £10,000, and ‘large’ entities continued to pay £36,000.
Those amounts also apply to the 2025–26 financial year, so they are the figures relevant to payments due by 30th September 2026. However, the Finance Act 2026 introduced new bands and charges for the financial year beginning 1st April 2026. The first payments calculated using the new rates will be due in 2027.
We’ve compiled this article to explain what the ECL is, and whether your business needs to register and pay it.
What is the Economic Crime Levy?
The Economic Crime Levy is an annual charge that affects organisations that are supervised under the Money Laundering Regulations. It is payable by entities with UK revenue of more than £10.2 million for the relevant financial year. If the relevant accounting period is not 12 months, the threshold and band limits are adjusted proportionately.
Because the rates have changed, the amount payable depends on the financial year concerned:
| UK revenue | 2025–26 fee | 2026–27 onwards |
|---|---|---|
| £10.2 million or less | Small No fee |
Small No fee |
| More than £10.2 million and not more than £36 million | Medium £10,000 |
Band A £10,200 |
| More than £36 million and not more than £500 million | Large £36,000 |
Band B £36,000 |
| More than £500 million and not more than £1 billion | Large £36,000 |
Band C £500,000 |
| More than £1 billion | Very large £500,000 |
Band D £1 million |
The levy may also be reduced where an entity carries on regulated activity for only part of the financial year. You can find the current figures in HMRC’s rates and allowances.
Whether an entity should register with HMRC depends on who supervises it for anti-money laundering purposes. An entity must register with HMRC if its UK revenue is more than £10.2 million and it is supervised by HMRC or a professional body.
Entities supervised by the FCA or the Gambling Commission should not register, submit ECL returns or pay the levy through HMRC. They must follow their supervisor’s reporting and payment process instead. Small entities do not pay the levy, although the FCA or Gambling Commission may still require them to submit revenue information or a nil return.
The usual payment deadline is 30th September following the end of the relevant financial year, but businesses should follow the instructions issued by their particular collection authority.
Which businesses are supervised under the MLR?
At this point, you may be wondering whether your business falls within the Money Laundering Regulations (MLR) and, if so, which authority supervises it. You can find more details on this topic here.
That said, HMRC is the supervisory authority for the following:
- Money service businesses that aren’t supervised by the Financial Conduct Authority (FCA) or the Gambling Commission
- High value dealers handling cash payments of €10,000 or more in single or linked transactions
- Trust or company service providers not supervised by the FCA or a professional body
- Accountancy service providers not supervised by a professional body
- Estate agency businesses not supervised by a professional body
- Bill payment service providers not supervised by the FCA
- Telecoms, digital and IT payment service providers not supervised by the FCA
- Art market participants buying or selling artworks with single or linked transactions of €10,000 or more.
- Letting agency businesses renting property or land valued at the equivalent of €10,000 or more per month and not supervised by a professional body
The Financial Conduct Authority is the supervisory authority for businesses such as lenders, money brokers, traders in foreign exchange, financial futures and options, plus portfolio management advisers. The Gambling Commission is the supervisory authority for licensed casino operators for the purposes of the ECL. Businesses in sectors such as accountancy, law and tax advice are usually supervised by professional bodies such as the Institute of Chartered Accountants in England and Wales (ICAEW) or the Solicitors Regulation Authority (SRA).
While registering for anti-money laundering (AML) supervision looks simple, it isn’t always so. For example, some businesses supervised by HMRC also need to be registered or authorised by the FCA. You also need to tell HMRC about each of the premises from which you operate, and you may have to pay fees for each. You can find out more by reading HMRC’s guidance on who needs to register for money laundering supervision.
Need help with AML supervision or ECL?
Hopefully, this short guide will have given you insight into both the Economic Crime Levy and the Money Laundering Regulations. It can be a complex business making sure you are compliant with the regulations, so if you are a THP client do feel free to ask one of our accountants for advice. Similarly, if you’ve received a letter from HMRC saying it thinks you should have paid the ECL, get in touch today. We’ll be able to help you understand whether the ECL applies to you and which collection authority you need to deal with.
About Jon Pryse-Jones
Since joining THP in 1978, Jon Pryse-Jones has been hands on with every area of the business. Now specialising in strategy, business planning, and marketing, Jon remains at the forefront of the growth and development at THP.
An ideas man, Jon enjoys getting the most out of all situations, “I act as a catalyst for creative people and encourage them to think outside the box,” he says, “and I’m not afraid of being confrontational. It often leads to a better result for THP and its clients.”
Jon’s appreciation for THP extends to his fellow team members and the board. “They really know how to run a successful business,” he says. He’s keen on IT and systems development as critical to success, and he continues to guide THP to be at the cutting edge and effective.
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