HMRC are known to be increasing their focus on businesses with tax arrears and are actively monitoring businesses to ensure tax is paid as it falls due and if not are now issuing formal demands for security.
These demands cover amounts due for PAYE/NIC and/or VAT over a four-month minimum period and are held on account by HMRC for a period of up to two years, and to be used against future arrears of tax (should they materialize). Directors of companies are also jointly and severally liable for the payment of a security on behalf of a company and are being sent the same security requirement letter as that issued to companies. Failure to pay the security by the specified date is a criminal offence with financial penalties capable of being levied on directors (as well as the company).
Clearly, this is not good news for businesses at a time when access to cash remains tight and there are continued pressures to pro-actively monitor cashflow.
Receipt of a “Notice of requirement to give security” can be very concerning for company directors and should one be received, it is imperative that a dialogue is entered into with HMRC. The position can also be helped by pro-actively seeking “time to pay” agreements with HMRC before arrears start to increase.
If you would like to discuss how we can help you, or have any other queries, please get in touch with your contact at UNW in the first instance.
