Giving security: joint interest-bearing bank or building society accounts
Security deposits do not earn interest (either for the person or for HMRC) and there is no legal requirement in law to pay interest to a person who has given a security deposit.
Should a person enquire about interest, explain to them that they can lodge security in an interest-bearing bank or building society account which will attract interest but will not allow them to make withdrawals without HMRC approval.
The account will be set up with the person’s bank with HMRC as joint owner. The person’s bank will need to contact the Cash Management Policy Team who act for HMRC where a joint account is set up.
The address for the Cash Management Policy Team is
Cash Management Policy Team
9th Floor NW Alexander House
21 Victoria Avenue
Southend on Sea
Monies can only be withdrawn on the signature of both parties. The signature of both parties is also required to close a joint account.
For PAYE/NICs cases only
- reduce the SAFE charge to nil
- note it “not due to be paid”
- lock the charge
- date the charge.
When you are satisfied that the account has been set up and is operating correctly you should notify the person that the requirement for security has been met. You should set the Security Deposit Held indicator on IDMS.
Don’t forget to remove the indicator when security is executed or the account closed.
If you need to close the account contact the Cash Management Policy Team.