Late registration

Penalty for failure to register under the Money Laundering Regulations

HMRC had written to the taxpayer saying it was unable to find a registration for it as an estate agency under the Money Laundering Regulations. It asked the business to file a form MLR100 which the taxpayer did. However HMRC issued a late registration penalty of £500 on the basis that it had prompted the company to register. The taxpayer appealed.

The company said it had not been ‘fully trading as an estate agent’ and the director who had since resigned had not been aware that it should register. As soon as the director had realised she registered the company immediately.

The First-tier Tribunal said it was clear ‘that if a person carries on an estate agency business as defined in the Estate Agency Act 1992 they are required to register’. Further reg...