HMRC has the power to demand security in the form of a cash deposit or financial bond in any circumstance where it is considered there exists a risk that any tax or duty will not be paid on time.
Timothy Thompson of Kangs Solicitors outlines where liability falls.
Who Is At Risk? | Kangs Tax Offences Advisory Team
Value Added Tax
Security can be demanded from the person or business registered or required to be registered for VAT.
National Insurance Contributions | Pay as Your Earn Tax
The employer is responsible for the provision of security.
Where the employer is a limited company or a limited liability partnership (LLP), security may also be required from one or more of the company directors or partners.
Failure To Comply | Kangs Financial Crime Defence Solicitors
- It is a criminal offence to continue the supply of any goods or services that are taxable.
- HMRC may interview under caution in the event of non-compliance with an effective request, which may lead to prosecution before a court.
- A fine of up to £5,000 may be imposed for each taxable supply wrongfully delivered.
How Can We Assist? | Kangs National Criminal Defence Solicitors
Any HMRC notification indicating that a security may be required or an interview is being arranged should be treated seriously and not ignored.
Immediate advice and guidance should be sought from our experienced team, accustomed to advising clients upon such issues
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