FHDDS24100 | Policy and background: how the scheme works: approval

(Finance Act 2017, sections 49-51 and the Fulfilment Businesses Regulations 2018, regulations 3-6)

A fulfilment business (see FHDDS23000) must obtain approval from HMRC in order to continue to trade as such. From 1 April 2019, it must not carry on a fulfilment business unless and until it has received approval from HMRC. Penalties and sanctions can be applied where a person carries on a business without approval.

Once approved, the fulfilment business will receive a Notice of Approval. This will set out its unique reference number for the online scheme, the date from which approval by HMRC has effect, any conditions or restrictions imposed by HMRC and the obligations on the fulfilment business under the scheme.

For further details on the following:

• the approval process, including terms and restrictions, see FHDDS24200 and FHDDS30000

• revoking the approval see FHDDS33200

• penalties and sanctions see FHDDS24400, FHDDS40000 and FHDDS50000.