Giving security: performance bonds: obtaining a performance bond
You should complete as much of the bond as you can, using the information the person gives you, and attend the financial institution with the person.
In order for the bond to be enforceable it must be signed by an officer of HMRC and an authorised officer of the financial institution providing the bond.
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
The bond must be sealed. A seal is a stamp which is used to indicate that the document has been executed with the authority of the Commissioners of HMRC. Stamps issued to Securities Teams must be kept in a safe when not in use.
Bonds are forwarded to and kept by the Securities Team in Euston Tower until funds are required or until such time as the bond can be returned to the financial institution that provided it. Access to performance bonds is restricted and monitored with checks carried out and documented as part of management assurance programmes.
Once you have the authorised and sealed the bond you should set the Security Deposit Held indicator on IDMS. The indicator should be removed when security is called in or the bond returned to the financial institution that provided it.
For PAYE/NICs cases only
- reduce the SAFE charge to nil
- note it “not due to be paid”
- lock the charge
- date the charge.