At Oak Accountancy Services, we realise that we succeed only if you succeed, and that we grow only if you grow.

HMRC security deposit regime to be extended
17/07/2018

The security deposit legislation is to be extended to both Corporation Tax and Construction Industry Scheme (CIS) deductions from April 2019. The security deposit regime allows HMRC to require security from high-risk businesses where there is a serious risk that taxes owed will not be paid.

At present HMRC’s security deposit powers only apply to VAT, PAYE and National Insurance Contributions, Insurance Premium Tax (IPT) and some environmental and gambling taxes. This measure will give HMRC the power to require securities in relation to Corporation Tax and CIS deductions.

There are many reasons for non-payment of tax to HMRC including phoenixism where businesses evade tax by becoming repeatedly insolvent and a new company being set-up. These measures also target businesses that build up large debts to HMRC. The extension of these powers to Corporation Tax and Construction Industry Scheme (CIS) deductions will help target businesses that seek to fail to comply with their tax obligations.

The required security will usually be payable by electronic payment to a specified HMRC bank account, by cheque, by banker’s draft, a specified bank guarantee or by way of a payment into a joint HMRC/taxpayer bank account. The amount of security required is calculated on a case by case basis. If the business does not meet HMRC’s security deposit requirement they will have committed an offence and will be subject to a fine. Businesses required to pay a security deposit will have the option to appeal any decision by HMRC.


 

Newsfeed Search


Newsfeed

Anti-money laundering rules

17/10/2018 – The Money Laundering Regulations (MLR) are designed to protect the UK financial system and put in place certain controls … More...

New style £50 note to be introduced

17/10/2018 – In a joint statement issued by HM Treasury and the Bank of England it had been confirmed that the £50 note is to … More...

Tax to pay if you exceed the annual pensions allowance

17/10/2018 – The annual allowance for tax relief on pensions has been fixed at the current level of £40,000 since 6 April 2014. The … More...

Newsletter

With our newsletter, you automatically receive our latest news per e-mail and get access to the archive including advanced search options!

» Sign up for the newsletter
» Login