'High Value Dealers' on HMRC's hit list

It's said that 'cash is king', but businesses accepting cash for goods totalling €10,000 or more (or the Sterling equivalent) are now in HMRC's spotlight for potential money laundering.

As a result of the clamp-down, all companies accepting cash payments on or above the threshold limit will be classed as high value dealers and will have to register with HMRC under Money Laundering Regulations (MLR).

So, which transactions are considered high value payments?

  • single cash payments of €10,000 or more for goods
  • several payments for a single transaction totalling €10,000 or more
  • payments of €10,000 or more divided into smaller amounts so they come below the high value payment limit.

It may seem surprising, in an age when online and electronic transactions are the norm for most businesses, that there are still payments of this size made in cash.  However, in the creative and construction sectors, it is still common practices.  The types of businesses might be classed as 'High Value Dealers' for purposes of HMRC registration include: 

  • Jewellers
  • Dealers in cars, boats, art or antiques such as music memorabilia
  • Builders
  • Bathroom or kitchen suppliers
  • Auctioneers and brokers

Any company currently accepting or making high value cash payments must immediately register with HMRC under MLR regulations.  There is a non-refundable fee of £100 for first registration, with a further £115 fee for each of the premises included in an application.

Business are excluded from MLR registration if they:

  • Only receive payments for services or for a mix of goods and services where the value of the goods is less than €10,000
  • Only accept large payments by credit card, debit card or cheque.

 
If Cash is King for your business, contact NWN Blue Squared to make sure you are compliant.

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