HMRC – THE INVOLUNTARY CREDITOR

HMRC are the ultimate involuntary creditor. By trading in the UK a business or individual is liable to pay tax under UK legislation.

With effect from 6 April 2012, as part of their debt recovery toolkit, HMRC has received additional powers to request a security bond for PAYE/NIC payable.

The bond will usually cover 4 months of PAYE/NIC plus arrears (if any). This security is likely to be in place for 2 years.

Should a security bond be requested and not paid, this can result in criminal proceedings whereby if HMRC are successful then a fine of £5,000 can be issued.

If your clients face any difficulties with HMRC, contact us to see if there is a solution that we may be able to provide.