As we approach the end of September, businesses across the UK are gearing up to meet the inaugural deadline for the Economic Crime Levy (ECL) payment.
HM Revenue & Customs (HMRC) has enabled this process by launching an online payment service, a move that signals the Government's steadfast commitment to using technology to streamline compliance and regulatory processes.
Understanding the Economic Crime Levy
Introduced as a part of the Government’s strategy to combat economic crime, the levy is designed to fund initiatives and actions aimed at deterring such activities.
The levy is part of the Government's proactive approach to ensuring a safer and more secure economic future.
The online payment portal
In a bid to simplify the payment process, HMRC has launched an online payment service for the annual ECL.
This service is set to be a game-changer, offering businesses a straightforward and efficient way to comply with the levy requirements. The inaugural payment is due by 30 September.
Who has to pay?
Businesses that earn over £10.2 million will have to pay the new levy, starting at £10,000 and up to £250,000 for the largest businesses.
- Medium-sized businesses that generate revenue between £10.2 million and £36 million will be required to pay an annual fee of £10,000
- Large businesses that generate revenue between £36 million and £1 billion will be required to pay an annual fee of £36,000
- The largest businesses that earn more than £1 billion will be required to pay an annual fee of £250,000
Penalties
Late payments will be met with a £250 charge if the levy is not paid within 30 days of the due date, with it rising to 5 per cent of the levy due for payments over three months late.
Staying informed
As businesses navigate this new process, business owners should ensure they remain updated with developments. HMRC has been proactive in providing updates and resources to help businesses comply with the new requirements.
Businesses can sign up for webinars and consultations to understand the details of the levy and how it impacts them.
Looking ahead
As the deadline inches closer, it is essential for businesses to familiarise themselves with the payment process and ensure they are prepared to meet the requirements.
The online payment system is a step in the right direction, promising a hassle-free compliance process.
Businesses are encouraged to leverage the resources provided by the HMRC, including signing up for the economic crime levy webinar to gain a deeper understanding of the levy and its implications.
As businesses prepare to meet the inaugural deadline, it is essential to stay informed and use the resources provided by the HMRC to ensure a smooth and compliant transition.
If you would like more information about the ECL or would like assistance on how to make payments, please contact us today.