Notice of Requirement to Give Security

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There has recently been an increasing incidence in the issue of such Notices by HMRC.

Security Notices provide HMRC with one of their most powerful weapons against VAT registered traders. They are typically issued to directors of a newly formed company where a previous business has gone down owing VAT, PAYE or other taxes.

The usual requirement is for the business to lodge a security deposit with HMRC equivalent to 6 months VAT liability. In the current trading climate this can have a devastating impact on any business.

Immediate action is required, as continuing to trade without response is a criminal offence, with fines of up to £5,000 for each taxable supply!