HM Revenue & Customs will require employers to pay a security from April if it believes that there is serious risk they will fail to pay the requisite PAYE tax deductions or National Insurance Contributions on behalf of employees.
If employers fail to pay the security, they will be punished with a fine of up to £5,000 and the action will be enforced through the courts.
- deliberately choose not to pay
- engage in phoenixism
- have no qualms about building up large PAYE or NICs debts, including penalties
- do not respond to HMRC’s attempts to contact them.
The move will not affect employers that have genuine payment difficulties, however. They have been advised to read the HMRC guide ‘Problems paying HMRC‘, which provides guidelines on possible action as well as contact details for the