Economic crime levy
Who must pay the levy
Firms pay a fixed fee based on entity size as determined by UK revenue.
There are four bands:
- less than £10.2 million – small firm
- between £10.2 million and £36 million – medium firm
- between £36 million and £1 billion – large firm
- more than £1 billion – very large firm
Small firms are exempt and do not have to pay the levy.
The other bands each pay:
- £10,000 – medium firm
- £36,000 – large firm
- £500,000 – very large firm
From 1 April 2026, the levy rates will increase for firms with UK revenues above £500 million.
The former band covering businesses with annual UK revenues between £36 million and £1 billion will now be split into two:
- Band C – £36 million to £500 million
- Band D – £500 million to £1 billion
Firms in the new Band C will face a significant jump in the levy.
We are disappointed to see increases in the levy a number of our members will pay.
Learn more about the changes to the levy.
How to pay the levy
HM Revenue and Customs (HMRC) collects the levy from medium, large and very large law firms and legal businesses in the 'regulated sector' for AML purposes.
If your business is in scope, you must:
- register for the levy online
- submit an online return every year by 30 September
- pay the levy by 30 September every year your UK revenue exceeds the threshold
Register to pay the levy
Use the HMRC online service to register for the levy.
To register, you will need:
- information about your UK revenue for the last financial year
- the date your business started AML-regulated activities
- the name, role, email address and telephone number of someone in your business
- the sector your business operates in
You will be sent your levy registration number once your registration is complete.
Contact HMRC's helpline on 0300 322 9621 if you have any issues with registration.
Submit a return online
Once you have registered for the economic crime levy, you must submit a return online every year by 30 September.
GOV.UK has guidance on how to submit a return and how to cancel your registration.
Pay the levy online
Use the HMRC online service to pay the economic crime levy.
You will need your 14-character economic crime levy number. This will start with an X.
You can pay online:
- through your online bank account
- by direct debit
- by debit or corporate credit card
GOV.UK has guidance on how to pay the levy.
If you do not pay the levy
If you did not submit and pay your return by 30 September, HMRC will charge interest and you may have to pay penalties.
Access the economic crime levy service on GOV.UK.
How the levy is spent
The levy raises about £100 million each year from around 4,000 AML-regulated entities.
Each year, HM Treasury reports on the collection and spend of levy funding.
Between 2023 and 2026, HM Treasury plans to:
- invest over £100 million in technology to analyse and share real-time data on threats
- fund increased resourcing across the AML system
- invest £60 million to fund specialist teams in the National Crime Agency
- provide funding for more UK Financial Intelligence Unit officers and financial investigators to analyse suspicious activity reports (SARs)
- invest £20 million in Companies House and the Insolvency Service
- provide £1.2 million to speed up reform of the AML supervisory regime
Read the 2023/24 financial year report on GOV.UK.
How the levy could be improved
We are pleased the UK government listened to our warnings and exempted small firms from the levy. However, we remain concerned about its impact on legal services.
Solicitors and firms already play an important role in tackling money laundering and economic crime, allocating substantial resources to comply with AML obligations.
Basing the levy on revenue is an arbitrary measure. It has no link between the amount a business must pay and the extent of risk it brings into the system.
We're also concerned the bands are too wide: the smallest firms within each band pay as much as the largest. We would support a more refined approach.