The Economic Crime Levy is a fixed annual charge on businesses regulated under the Money Laundering Regulations whose total UK revenue is more than £10.2 million. For the financial year starting 1 April 2026 there are four paying bands, from £10,200 for revenue up to £36 million to £1 million for revenue over £1 billion. Businesses supervised by HMRC or a professional body such as ICAEW or ACCA register, file a return and pay HMRC by 30 September each year.

What is the Economic Crime Levy and where is the law?

The levy, formally the economic crime (anti money laundering) levy, is a tax created by Part 3 of the Finance Act 2022 (sections 53 to 66). It was first charged for the financial year that began on 1 April 2022, and the first returns and payments were due by 30 September 2023. The bands and amounts were changed by section 113 of the Finance Act 2026 for the financial year beginning in April 2026 and later years.

Unlike most taxes, the levy does not depend on profit or on how much anti money laundering work a business does. If you are in scope and your UK revenue is above the threshold, you pay the fixed amount for your band. Section 54(4) also provides that the levy is not deductible in calculating profits for income tax or corporation tax.

Which businesses are in scope?

The levy applies to a person who carries on a “regulated business” at any point in the financial year. Section 65 defines this by reference to regulation 8(1) of the Money Laundering Regulations 2017, which lists the relevant persons:

  • credit and financial institutions;
  • auditors, insolvency practitioners, external accountants and tax advisers;
  • independent legal professionals;
  • trust or company service providers;
  • estate agents and letting agents;
  • high value dealers, casinos and art market participants;
  • cryptoasset exchange providers and custodian wallet providers.

Who you pay depends on your anti money laundering supervisor. Section 53 makes the Financial Conduct Authority the collection authority for firms it supervises and the Gambling Commission for firms it supervises. Everyone else, including businesses supervised by HMRC and by the professional body supervisors, deals with HMRC. If you are supervised by both HMRC and the FCA, or HMRC and the Gambling Commission, you pay the FCA or Gambling Commission and do not register with HMRC. Supervision of accountancy firms is explained in our guide to AML supervision for accountants.

What are the size bands and amounts?

Band (from 1 April 2026) UK revenue for the relevant accounting period Levy
Small Up to £10.2 million Nil
Band A Over £10.2 million, up to £36 million £10,200
Band B Over £36 million, up to £500 million £36,000
Band C Over £500 million, up to £1 billion £500,000
Band D Over £1 billion £1 million

These amounts come from sections 54 and 55 of the Finance Act 2022 as amended by section 113 of the Finance Act 2026. At the time of writing, HMRC’s payment guidance shows £10,000 for band A, which differs from the £10,200 in the amended statute, so check the current figures before paying.

For earlier years there were three paying bands. Medium entities (over £10.2 million up to £36 million) paid £10,000, large entities (over £36 million up to £1 billion) paid £36,000, and very large entities (over £1 billion) paid £500,000 for 2025 to 2026 and £250,000 for years before 1 April 2025.

Two adjustments apply. If the relevant accounting period is not 12 months long, the band thresholds are adjusted pro rata by days. If you carried on regulated business for only part of the financial year, section 54(3) reduces the levy proportionately.

How is UK revenue measured?

The levy’s financial year runs from 1 April to 31 March. Under section 56, the relevant accounting period is the accounting period that ends in that financial year. If more than one period ends in the year, their revenue is added together and their lengths combined. If none ends in it, special rules look first at a period ending within three months after the year, and otherwise at the last period ending before the year started.

Section 57 defines revenue as turnover plus any other amounts recognised as revenue in the profit and loss account under generally accepted accounting practice. Turnover is measured after trade discounts, VAT and other taxes. For a UK resident business, UK revenue is all revenue less a just and reasonable share attributable to permanent establishments overseas. For a non resident, it is the share attributable to a UK permanent establishment. Dividends from connected companies are ignored where profits on the shares would not be trading receipts.

The key point for professional firms is that the test uses total UK revenue, not just fees from work covered by the Money Laundering Regulations. A firm with £12 million of fees, only a fraction of which is regulated work, is still in band A. Accounting period rules are explained further in accounting periods and periods of account.

Illustration only. An accountancy LLP supervised by ICAEW draws up accounts to 30 April. Its year to 30 April 2026, with UK revenue of £14 million, ends in the financial year 1 April 2026 to 31 March 2027. It is in band A and must file a return and pay £10,200 by 30 September 2027. If it had become a regulated business only on 1 October 2026, the levy for that year would be reduced proportionately to reflect the shorter period.

Who registers in groups and partnerships?

There is no group threshold. Each member of a group is tested on its own revenue, and each one that qualifies must register, file and pay separately.

For partnerships, section 60 makes an LLP or other partnership with separate legal personality liable in its own right. For other partnerships, the partners at any time during the financial year are jointly and severally liable. HMRC’s guidance says the nominated partner must register, file and pay on behalf of the partnership.

How do registration, returns and payment work?

  • Register once, online, if you are supervised by HMRC or a professional body and your UK revenue is over £10.2 million for the accounting periods ending in a financial year. Do it in good time, because payment is due by 30 September. You will need details of your UK revenue, your accounting period, your sector and your tax references.
  • File a return by 30 September each year, giving the relevant accounting period, UK revenue (which can be estimated if necessary) and how long you carried on regulated activity during the year. HMRC asks registered businesses to file even in a year when they fall below the threshold.
  • Pay by 30 September, quoting the 14 character return number starting with X. If the deadline falls on a weekend or bank holiday, payment must reach HMRC by the previous working day. Late returns and payments can attract penalties and interest.

If you estimated revenue or the information was wrong, amend the return online. If you have overpaid, an amended return comes first and then a refund claim. If you stop regulated activity, move to FCA or Gambling Commission supervision or fall below the threshold, you can cancel your registration after filing outstanding returns and paying what is due. HMRC usually takes 15 working days to review the request, and records up to deregistration must be kept for 6 years.

What mistakes do firms make?

  • Testing only regulated fee income instead of total UK revenue.
  • Assuming a group is tested as a whole, when each entity is tested on its own.
  • Paying HMRC when the FCA or Gambling Commission is the collection authority, or the reverse.
  • Using the wrong accounting period where the year end is close to 31 March, or where there are two periods ending in one financial year after a change of year end.
  • Deducting the levy in the tax computation, which section 54(4) prohibits.
  • Paying an old band figure. Bands B to D and the amounts were reorganised from 1 April 2026.

For wider context on how supervision is changing, see AML supervision reform, and for other dates in the year see our UK tax deadlines calendar.

If HMRC opens a check into your return, tax investigation insurance pays your accountant’s fees. Solar Protect cover pays up to £100,000 with no excess; it never pays tax, interest or penalties. Read how our cover works or get a quote.

Sources

Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 8 October 2026. Part of Accountapedia, the Solar Protect guide to UK tax and accounting. This page is general information, not personalised advice.