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HMRC Security Demands


The VAT People - Expert Author

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2nd May 2013

HMRC has an obligation to protect the revenue it generates, and one of the tools they can use is a Security Demand. We are seeing them being much more aggressive in this area.

If HMRC feel there is a risk that the VAT that will be due from a taxpayers business may not be paid, either because of a prior history of non-compliance or operating in a risky environment, they may ask for security to be paid upon registration or after a period of non-compliance. If the demand is not paid, the penalties a business faces can be massive.

However, it is possible to negotiate with HMRC to reduce the level of demand, sometimes down to nil. Dependent on the facts the demand may even be withdrawn. If your client receives a security demand, it is important to quickly seek specialist advice, as this is an area HMRC feel they will usually dominate in.

About the Author

The VAT People are leading VAT and Customs Duty consultants based in the North West of England. We work with a wide range of businesses throughout the UK as well as assisting our accountancy colleagues to unravel the thorny VAT issues for their clients. We are one of the UK's largest and most comprehensive sources of VAT and Customs advice, our consultancy team having over 140 years of experience in VAT and Customs gained in either HMRC or a Big 4 accountancy practice environment.

Call us on our VAT helpline 0800 077 4604 to discuss. All initial discussions are free with no-obligation.

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Article Published/Sorted/Amended on Scopulus 2013-05-22 09:11:19 in Tax Articles

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