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HMRC internal manual

Securities Guidance

The security: repaying a security deposit: repaying a VAT/environmental tax security

Before you repay a security deposit that you no longer require check if the person has any outstanding debts to HMRC. If there are debts you must set-off all or part of the security against them, see SG66300.

If the business is insolvent, see SG66400.

The Department has a set-off policy.

If the person has deregistered for VAT take no action until the final liability (period 99/99) is on file.

Once you are satisfied that there are no outstanding debts to HMRC instruct the Southend Direct Receipt Team to repay security. They will need to know

  • the person’s name and registration number
  • the amount of security to be repaid
  • the MCD number(s) and date(s) of allocation
  • that a manual repayment direct to the person is required
  • to whom the cheque should be made payable
  • confirmation of the address for the repayment
  • confirmation of the bank details (sort code and account number) for the repayment.

If the person wants payments to be made directly to their bank account ask them for written authority, including their bank sort code and account number.

If security is held in a joint bank account, see SG54000, contact the Cash Management Policy Team.

If security was given in the form of a performance bond, see SG64000.