Propertymark has warned that hundreds of letting agents are at risk after the HMRC published its most recent update on compliance and penalties for the sector.
Between October and December 2023, 144 letting agents were sanctioned by HMRC.
Though most of these fines were for failing to register at the right time - with fines ranging from £1,250 to £52,000 - larger fines were issued in response to AML failures.
The largest fine - £175,701 - was issued for multiple failures in carrying out risk assessments, having the correct policies, control and procedures and keeping records properly.
Propertymark added: “It is vital that agents correctly apply for and maintain an up-to-date registration with HMRC, and whilst we actively advocate for more precise guidelines and understand the complexities of the current process, it’s crucial that agents understand the severity of the consequences of failure to register.
“The penalties for non-compliance are significant and can have a lasting impact. Agents could face a prison of up to two years or an unlimited fine.”
