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HMRC internal manual

Securities Guidance

The security: introduction

While we hold security we check regularly that the person is making returns and payments to HMRC on time, see SG61000.

During the time we hold security the person may ask for the amount of security to be reduced if their circumstances have changed.

In PAYE/NICs cases a person can only make a request to reduce security if they have paid a security deposit or provided a performance bond, see SG61100. They have a right of appeal against our decision on their request. We can ask others to provide security in their place, see SG61200.

When we no longer require security we will repay the deposit, see SG62000, or return the performance bond, see SG64000. If the person has any debt to HMRC when we no longer require security we can set-off all or part of the amount against the debt, see SG66300 for VAT/environmental tax cases and SG66350 for PAYE/NICs cases.

If the person has a debt while we hold security we can offset all or part of the security against the debt. The debt must be for the same regime for which we hold security, see SG65100. We can only call-in a performance bond once, see SG67100.

If, while we hold security, a person becomes insolvent, the National Insolvency Unit will seek to recover debts to HMRC, see SG66400.

We can require further security if the amount we hold becomes insufficient. We give the person a further Notice of Requirement (NOR) against which they have a right of appeal, see SG68000.