HMRC get new PAYE security powers

It has been a feature of the VAT system for years, but now HMRC are about to get the power to insist on the payment of security from businesses who are habitual offenders when it comes to paying PAYE liabilities. The new powers come in from April and non-payment can result in a fine of up to £5,000.

HMRC have said they will use securities to tackle the handful of employers who deliberately try to defraud the government by deliberately choosing not to pay, engage in "phoenixism", have no qualms about building up large PAYE or NICs debts, and do not respond to HMRC's attempts to contact them. This represents a further tightening of compliance rules surrounding the PAYE system following the introduction of penalties for late payment of monthly liabilities and the proposed move to real-time reporting.

Should you have any queries on your PAYE position, please contact your usual Davies Mayer Barnett contact or Richard Lupson-Darnell.