Financial security where payment for PAYE tax and NICS at risk

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HMRC’s plans to ask certain employers to pay a security where there is a risk of deliberate non-payment of PAYE will be introduced from April 2012.

As announced by the Coalition government at the time of the June 2010 Budget, section 85 of the Finance Act 2011 includes a measure that allows HMRC to make PAYE regulations that would require employers who choose not to pay over PAYE tax and NICs to pay a security.  Such securities would be a cash deposit held by HMRC, or a payment into a joint HMRC/taxpayer interest-bearing banking facility, or a guarantee provided by a bank.  Requiring a security would apply only where PAYE is seriously at risk.  It would also become a criminal offence for an employer not to pay a security when one is required.

HMRC has announced that these powers will be introduced from April 2012.

Further information:

Powers to prevent deliberate non-payment of PAYE

Tags: Financial Secuirty, NIC's non payment, NICs, PAYE, paye non payment, Recent Payroll News

This entry was posted on Monday, October 10th, 2011 at 09:07 and is filed under PAYE. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.