Giving security: performance bonds: time allowed to provide a performance bond
A person may ask for time to provide a performance bond.
You can agree time to provide the bond but the time allowed should be kept to a minimum as there is a risk to the revenue until the bond is in place. The maximum amount of time you should allow the person to provide the bond should not exceed three months.
If you agree time to provide the bond remind the person that
- If they default on the agreement they can be prosecuted. Only when the bond is in place has security been provided.
- The arrangement only covers security. All other payments to HMRC should be made by their due dates.
The period for monitoring the case starts from the date the bond is in place, see SG61000.