½Û×ÓÊÓÆµ

Security deposits for PAYE and CIS

Produced by a Tolley Employment Tax expert
Employment Tax
Guidance

Security deposits for PAYE and CIS

Produced by a Tolley Employment Tax expert
Employment Tax
Guidance
imgtext

When security deposits for PAYE and CIS are used

HMRC is able to ask employers for a security where there is a serious risk that they will not be able to pay over their PAYE and Class 1 National Insurance deductions to HMRC. The power is used by HMRC in high risk situations such as employers who:

  1. •

    deliberately choose not to pay

  2. •

    run up PAYE debts in their companies, close down their companies writing off the debt and then set up new ones to evade tax

  3. •

    build up large PAYE debts and penalties and do not respond to HMRC contact

ITEPA 2003, s 684(4B); SI 2003/2682, reg 97N

The security deposit regime also includes Construction Industry Scheme (CIS) deductions. For further details, see Simon’s Taxes E4.11140 and HMRC Securities Guidance Manual SG13000.

How security deposits work

HMRC require the security

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+â„¢
Powered by

Popular Articles

Premiums on the grant or surrender of a lease

Premiums on the grant or surrender of a leasePremiums on the grant of a lease ― outlineWhen a property investor grants a lease, potentially this could be done on the basis that the tenant pays a premium for the initial grant of the lease, in addition to also paying rent over the term of the lease.

14 Jul 2020 12:58 | Produced by Tolley in association with Rob Durrant-Walker of Crane Dale Tax, part of AMS Group Read more Read more

FRS 102 ― tax presentation and disclosures

FRS 102 ― tax presentation and disclosuresPresentation of tax under FRS 102An entity must present changes in a current tax liability (or asset) and changes in a deferred tax liability (or asset) as a tax expense (or income) unless the item creating the current or deferred tax amount is recognised in

14 Jul 2020 11:46 | Produced by Tolley in association with Malcolm Greenbaum Read more Read more

Self assessment ― estimates and provisional figures

Self assessment ― estimates and provisional figuresIf the taxpayer does not have sufficient information to enable them to complete the tax return in the time allowed, they should include either a best estimate or a provisional figure. The taxpayer should not either leave a box blank or enter

14 Jul 2020 13:37 | Produced by Tolley Read more Read more