Can UK Property Sourcers Use SIC Code 82990?

Are you a property sourcing agent using the SIC code 82990 for your business?

If so, we've got some important news for you.

82990 is Designed For Generic Use. Not Property Sourcing.

Despite what others may tell you, the SIC code 82990 is a generic code.

It's like a one-size-fits-all hat - it's not really a perfect fit for anyone. It's used for businesses when there's no other code available, such as 'Agricultural Showground' or something incredibly niched. 

In fact, the actual description for this SIC Code is: 'Other business support service activities not elsewhere classified'

Check out Experian's guidance, if you don't believe us! 

Property Sourcers are Not 'One-Size-Fits-All'

Here's the deal, sourcing agents aren't 'one-size-fits-all'.

In the eyes of the law, we're acting as estate agents and so must use the appropriate SIC Code. 

You Should Be Using SIC Code 68310

The only SIC code for property sourcing agents, deal sourcers and deal packagers is 68310. That's right, 68310. HMRC expects us to use this specific code.

It's crucial we get this right. We're not just ticking boxes, we're ensuring compliance, maintaining professionalism and integrity for our businesses and our sector. 

But I've Been Told By An 'Expert' To Use 82990 (or other SIC Code)

We've heard it all, every different type of SIC code available to try and get away with 'not having to be fully compliant' - mainly as they know that as soon as you set up your business with 68310 and then register with HMRC, you are on their radar for full compliance.

But is this such a bad thing? Do you not want to operate in a community of UK property sourcing agents who are working with the law to run professional and compliant businesses? Reduce the ridiculous level of money laundering, daylight robbery (and much worse) running through our sector. 

The fines are only there - just like for anything else - for those who do not meet the right compliance requirements. 

Think Of It From An Investors Perspective

Would you want to work with someone who hasn't completed all of the proper checks and operates in a slap dash way, just as they want to get cash from you as quickly as possible? 

Probably not. 

Property sourcing is already seen as a 'cowboy' sector by many investors, who just won't go near an agent following previous experience (or hearing of) investors working with agents who have run to the hills with their cash and they can do nothing about it as the proper compliance wasn't met. 

I imagine most property investors, would prefer to work with a sourcing agent they can build a trusting professional relationship, and continue working together for years to come. 

Using the correct SIC code - 68310 - lines us up with estate agents / real estate, who also have to meet the same level of compliance criteria. 

I've Already Set Up My Business Using a Different SIC Code

Technically, you can have up to 5 different SIC codes on your business - so long as what you're doing truly reflects all of those services. 

If you are just property sourcing, we would advise to stick to just 68310. 

Now, here's the catch....

Already traded?

Unfortunately, when you switch your SIC Code you could be facing a fine from HMRC - so we would advise to make sure you have all of your compliance in place to reduce this down. 

Haven't Traded Yet?

There's hope. We would advise you to ask your accountant to draw up a letter to confirm that it's taken you longer than intended to get your company set up. You haven't traded and adapting your SIC Code to reflect your business. Then make sure you have all of your compliance in place to get cracking. 

Haven't Set Up Your Company?

You are in the best position. Make sure you understand property sourcing, requirements and what's expected of you. Have your documents lined up ready to go + all training completed, so you can set up your company using SIC Code 68310 and then register with HMRC shortly after. 

Unfortunately we don't know the exact 'grace period' you're allowed between setting up tour company and registering with HMRC - they haven't confirmed with us.

However, we would certainly advise to keep it well within a 30 day period just to be safe. 

Not Sure What Compliance I Need?

Good news is we run an online course to help...we hear you sigh "I've heard it all before".

And you probably have...our sector is saturated with courses claiming to 'get you cash quick', 'have mojitos on the beach in 30 days', 'quit your job in 7 days'

Sounds incredible, right...almost unbelievable? Unfortunately we just can't - and won't - compete with those claims.

However, what we will provide you with is honest, easy-to-follow guidance to help you navigate through the compliance requirements of property sourcing so you can set up and run a professional business. 

What makes us different, is we utilise compliance to show you effective and organised ways of running your business, so you're putting yourself ahead of others to build a long-term strategy. 

We want you to connect with investors and build solid relationships that work for your business in years to come. 

If you're looking for a quick buck by using hefty fees on investors to get your cash in the bank asap...our course just isn't for you.

But that's okay. We've helped hundreds of sourcing agents build compliant, professional and successful businesses - and there are many more out there wanting to learn. 

If you're looking to create a long-term sustainable business, come and take a look at how we could help you on your property sourcing journey.

Complete Property Sourcing Programme - One-Stop Sourcing Course + Bonuses