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HMRC internal manual

Securities Guidance

From
HM Revenue & Customs
Updated
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Requirement to give security: serving the Notice of Requirement to give security (NOR): business has ceased to trade

Do not attempt to serve a Notice of Requirement (NOR) on a business that has ceased to trade.

VAT/environmental tax cases

If you have reason to believe that a registered person is trading you should serve the NOR and ask them to provide you with written evidence that they have de-registered.

If, having served an NOR, the person advises you that they have ceased to trade and have deregistered from VAT monitor the case during the appeal period.

If the registered person satisfies you that they have ceased to trade you can close the case and advise the person using the letter Further information NOR withdrawn.

If you are not satisfied that the registered person has ceased to trade continue with your security action, SG43500.

PAYE/NICs cases

If you have reason to believe that an employer is trading, and that a PAYE scheme is still open, you should serve the NOR. Ask the person on whom you serve the NOR to provide you with details of the P45s issued to leavers.

If, having served an NOR, the person advises you that the PAYE scheme has closed and/or they have ceased to trade monitor the case during the appeal period.

If the person satisfies you that the PAYE scheme has closed and/or they have ceased to trade you can close the case and advise the person using the letter Further information NOR withdrawn.

If you are not satisfied that the PAYE scheme has closed and/or the business has ceased to trade continue with your security action, see SG43500.

For tax purposes an employment exists where an individual works under a contract of employment, sometimes called a ‘contract of service’ or a contract of apprenticeship. Such individuals are employees and are taxable under ITEPA 2003, and employers must operate PAYE. For NICs purposes where a worker is an employed earner they are subject to Class 1 NICs.

If you suspect that PAYE is not being operated when it should be report the facts to (This content has been withheld because of exemptions in the Freedom of Information Act 2000) .