From 6th April 2012, HMRC will have the authority to demand security in the form of a bond from an approved financial institution, or a cash deposit from employers who avoid paying PAYE or class 1 NICs. This will not affect employers who pay their tax on time and will not be used against employers who are having genuine cash flow difficulties.

Currently HMRC can demand security for insurance premiums, environmental taxes and VAT, which is proving to be effective, as a high percentage of traders are complying after the first warning letter.

If you feel you may be affected and have genuine problems, take a look at the page on HMRC website ‘ Problems paying HMRC’, offering guidance and advice.

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