HMRA2030 – General information: What does the term 'fit and proper' mean and how does it apply to the approval and registration process?

The term ‘fit and proper’ suggests that to be deemed suitable for registration and approval applicants must meet or exceed a particular level of suitability, compliance and integrity in how they conduct, or appear likely to conduct, their tax affairs with HMRC. The term has been used where traders have failed to address genuine compliance concerns or they have been shown to be involved with fraud or duty evasion. It also includes the potential revenue risk that an application represents. All applications and reviews of approvals must be considered against their overall suitability, including a judgement on whether what is known about any person or persons associated with the trader reasonably suggests a significant real or potential risk to the revenue.

Applications which fail to meet HMRC requirements will be rejected unless it is unreasonable to do so in the circumstances and after considering the available information. Existing traders that appear to be falling short of an acceptable level will be reviewed and considered for revocation.