Security as a condition of releasing a VAT credit: when we may require security
Where a person
- makes a VAT claim valued at £500,000* or more that we need time to verify
- makes a claim that we have reason to believe may not be valid or may be inaccurate
we can offer to make payment prior to carrying out a full verification of the claim on condition that security is provided.
A letter of offer should be issued, see SG29700.
*In MTIC cases, the claim may be for any amount.
If a registered person is due a VAT credit and has received, or is about to receive, a Notification Letter under section 77A of the VAT Act 1994 (notice of potential joint and several liability for VAT unpaid on the supply of specified goods), we may require security before making payment.
A Notice of Requirement to give security under paragraph 4(1A) of Schedule 11 to the Value Added Tax Act 1994 should be issued, see SG29800.
For more information on joint and several liability see Notice 726 Joint and several liability for unpaid VAT.