UK businesses regulated for anti-money laundering purposes have until the end of today, 30 September 2026, to pay the Economic Crime Levy (ECL) for the 2025 to 2026 financial year. HM Revenue & Customs (HMRC) has reminded qualifying firms that missing the deadline could result in late payment interest and financial penalties.
The levy, introduced under the Finance Act 2022, is designed to fund government initiatives to tackle money laundering and fraud, including providing additional resources for the National Crime Agency. It applies to all entities that are supervised under Money Laundering Regulations and have a UK revenue exceeding £10.2 million per year.
Who needs to pay?
The requirement to pay the levy depends on a business’s “size” based on its UK revenue during the relevant financial year. While small businesses with a revenue of £10.2 million or less are exempt, larger entities must pay a fixed annual fee:
- Medium entities: UK revenue between £10.2 million and £36 million must pay £10,000.
- Very large entities: UK revenue exceeding £1 billion must pay £250,000.
Businesses must ensure they are registered for the levy before attempting to make a payment. For many professional sectors, including legal services, the levy is a mandatory part of the regulatory landscape. Further details on how the levy affects specific sectors can be found via The Law Society, which provides guidance for firms managed under these regulations.
Payment methods and processing times
With the deadline falling today, the method of payment is critical to ensure funds reach HMRC on time. Business owners and financial directors should note the varying processing times for different banking methods:
- CHAPS: These payments usually reach HMRC on the same working day if made within bank hours, making this the most secure option for last-minute transfers.
- Online or Telephone Banking (Faster Payments): Typically reaches HMRC on the same or next day.
If the deadline is missed, HMRC may apply late payment interest from tomorrow, 1 October. The levy is an annual requirement, and the revenue thresholds are calculated based on the previous year’s financial performance. For businesses that have seen their revenue fluctuate across the £10.2 million threshold, it is necessary to check status annually to confirm whether they have moved into a taxable band.
