The security: reducing the security for VAT and environmental taxes
A person who has given security may ask later for a reduction in the value of the security they have given.
Some reasons why a person might ask for a reduction are that their business has suffered a downturn or that the value of their taxable supplies has reduced.
If the person asks for a reduction more than 30 days after the date on the Notice of Requirement (NOR) you can reduce the security if you think the risk to the revenue has reduced. You can cancel the security if you think there is no longer a risk to the revenue.
You agree that the value of the security can be reduced
- issue the letter Further information NOR reduced
- repay the part of the security deposit that you no longer require, see SG62100, or
- return the performance bond, see SG64000, and ask for a new bond for the lower value, see SG53500.
You agree that the security is no longer required
- issue the letter Further information NOR withdrawn
- repay the security, see SG62100,
- return the performance bond, see SG64000.
You do not agree that the security be reduced
Issue the letter Further information NOR upheld.
The person does not have a right of appeal against your decisions when the request is made more than 30 days after the date on an NOR, but they may make a late appeal to the tribunal.