Legislation came into force on 26 June, which means that businesses accepting cash payments of €10,000 (or equivalent currency) or more, in exchange for goods need to register with HMRC for supervision under money laundering regulations. This is a decrease in the limit from the regulation which used to be €15,000. Bolton accountants at CHW will be able to advise you on how to register and meet the criteria.
Those who meet this criteria, are referred to as “high value dealers”. Similarly, if your business often exceeds cash payments of €10,000 when paying suppliers, you will also have to register.
We’ve set out some examples as to where we feel this new legislation may apply to our clients. Those who are involved in the following sectors should take note:
In terms of what is classed as a transaction that meets the threshold, it can include; a single cash payment €10,000 or above for goods, a single transaction with a series of payments where the single transaction exceeds €10,000, a series of transactions that equate to more than €10,000 (e.g. splitting the payment up to two €5,000 transactions).
If you meet the threshold as a high value dealer, you need to ensure your business is registered with HMRC. If you receive in excess of €10,000, but it’s not in the form of cash then you are not required to register.
Those who meet the threshold must register immediately, by visiting HMRC’s website. To register, it costs £100 and you must complete the forms provided by HMRC. We suggest speaking with your Bolton accountant before completing the forms, to help ensure you receive clearance from HMRC. Once you are registered, HMRC should write to you to renew.
Once you are registered take a look at our LaunCHWorks package which is designed to help start-ups with HMRC deadlines.
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