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Are You Risking Hefty Fines? HMRC's Latest Crackdown on Sourcing Agents

Aug 09, 2024
HMRC's Sourcing Agent Fines

HMRC recently released a detailed report outlining fines for property professionals in 2023, totalling 42 pages.

 

Just by analysing two of those 42 pages, we've already identified five sourcing companies who have been fined. This suggests there may be many more cases across the full report.

 

Now, you might be thinking, "Surely these fines can't be that bad?" - they are sourcing agents, not fully fledged estate agency businesses. Think again.

 

We are talking about fines ranging from £1,500 to a frighteningly high £23,400. For some businesses, that's not just a slap on the wrist – it's potentially business ending. 

 

Lack of AML Supervision

So, why are these fines being given to sourcing agents?

All of them fell foul of not being registered with HMRC for AML Supervision or failing to do so in a sufficient amount of time. What does this actually mean?

  • They registered their business with Companies House
    • They didn't register for AML supervision OR
    • They didn't register within a 'good' period of time*

 

*Unfortunately we don't know what HMRC classes as a sufficient amount of time after registering with Companies House. We generally advise agents to sort this within 30 days, however the earlier the better really. 

 

What we do know, is Companies House are clearly talking with HMRC as these fines are coming through thick and fast. Even for sourcing agents who have never traded...or have the correct agency SIC code - 68310. 

 

There is no hiding. It has become quite clear, comply or pay the price. 

 

What Should Sourcing Agents Do?

It's simple: if you haven't already, you need to get your AML training in place and make sure you're registered with HMRC.

It's not just about ticking boxes or jumping through hoops. This is about protecting your business, your livelihood, and your reputation.

Investing in the necessary compliance measures is like an insurance policy for your business – it's a small cost that can protect you from much larger fines down the line.

 

Concerned For Your Business?

If you're unsure about the necessary steps or worried you may have overlooked something, our team of experts is here to help guide you through the process and ensure your full compliance.

Don't let your business become another statistic on HMRC's fine list. Take action now.

Contact us today, and let's make sure your business stays safe, compliant, and fine-free: 

[email protected]

Remember, when it comes to AML compliance and HMRC registration, an ounce of prevention is worth a pound of cure – or in this case, potentially thousands of pounds in fines.

 

Looking For Quick Training?

You can complete our Data Protection & AML course in as little as 3 hours. It's fully online and completely geared up for the property sourcing sector - you won't get wishy washy tick box information from us. 

 

For just £95 you can tick off both elements of legally required training in one go - click here to find out more: https://www.getpropertycompliant.co.uk/offers/5EFDEsxn/checkout