Being asked for security HM Revenue & Cu

Being asked for security
HM Revenue & Customs has the right to ask for security from certain traders as a condition of registering them for VAT. This right is used if HM Revenue & Customs believes that VAT could otherwise be at risk. It should be noted that it is a criminal offence to make taxable supplies if such a notice has been served and the security not yet paid. The penalty can be a £5,000 fine for each transaction.
If you have received such a notice, we may be able to advise how to reduce the amount of security (such as by making monthly returns rather than quarterly) and in ensuring that you comply and thus avoid penalties and possible criminal charges. We can also advise you on whether it is worth appealing against such a notice.
The security is normally held for 24 months (12 months if making monthly returns) and then returned to you if there have been no further VAT problems.
In some cases you may be asked for security as a condition of approving a VAT refund. If the security is not provided, HM Revenue & Customs may hold back the refund until it has finished checking that you are eligible to receive it.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s