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HMRC internal manual

Securities Guidance

Requirement to give security: introduction

If we require a person to give security we must give them a Notice of Requirement to give security (NOR)

  • for VAT/environmental tax cases, see SG41100 
  • for PAYE/NICs cases, see SG42100.

The NOR contains statutory information about

  • the law on security
  • the amount of security we require
  • when we require security to be given
  • how security can be given
  • the consequences of not giving security
  • the person’s rights to appeal and review.

In PAYE/NICs cases, the NOR will specify for how long we will hold security.

We issue a factsheet with the NOR that gives the person further information about security action and sets out the person’s rights and their responsibilities, see SG42500. We also issue a covering letter that gives the person further information about security.

The NOR, where possible, is served by hand. This gives us the opportunity to discuss security with the person and gather information about the person’s business, see SG43200.

The person has 30 days from the date of the NOR in VAT/environmental taxes to decide what they are going to do, see SG41200. In PAYE/NICs cases the person has 31 days from the date they receive the NOR to decide what they are going to do, see SG42150.

In PAYE/NICs cases a time to pay request has an effect on the date by which security is to be given, see SG42200. Additionally, we can ask for more than one person to give security jointly and severally with others, see SG42250.

If the person does not provide security they may be prosecuted and fined up to £5,000 for each offence. In PAYE/NICs cases the offence is not giving security. Cases suitable for prosecution are given to Criminal Investigation to pursue, see SG43530.