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HMRC internal manual

Securities Guidance

The security: reducing the security for PAYE/NICs - further provisions

Where a person who has given security jointly and severally with others and has applied for the value of the security to be reduced because

  • they are suffering hardship*
  • they have ceased to be the employer, or, in relation to the employer, any of the people mentioned in SG21000 

we can require

  • any other person who was given a Notice of Requirement (NOR)


  • any other person mentioned in SG21000 

to give security instead of the person who applies for the value of the security to be reduced.

You must give the person who you now require to give security a further NOR.

A person who is given a further NOR, who was also given an NOR for the original security, can only appeal on the grounds they are not someone from whom we are allowed to require security. They cannot appeal against any other aspect of the NOR.


Robert and Matthew are working directors of R&M Services (Yeadon) Ltd.

You required the company, as the employer, and Robert and Matthew, as directors, to give security, jointly and severally. Each person was given an NOR requiring security of £60,000 for 24 months. Each director paid £30,000 towards the security.

Robert, four months after receiving the NOR, asks for the £30,000 he contributed to be repaid because he is no longer a director of the company. Ian, Matthew’s cousin, is a new director with Matthew.

After reviewing the case you find that the company has met its PAYE/NICs payment obligations since the NOR was given. You take the following action

  • you accept Robert’s application and repay £30,000 to him
  • you give R&M Services (Yeadon) Ltd a further NOR requiring security from the company, Matthew and Ian of £60,000 for 20 months
  • you give Matthew a further NOR requiring security from Matthew, the company and Ian of £60,000 for 20 months
  • you give Ian a further NOR requiring security from Ian, the company and Matthew of £60,000 for 20 months.

The covering letters you send to the company, Ian and Matthew explain that a further £30,000 is needed from one or all the parties, and that it is for them to make the arrangement to pay the security in full.

*hardship is where the person, in providing security, damages their business or suffers personal financial hardship.