Starting a new business? Get 40% off our accountancy services for 3 months! 😀

x

If HMRC think there’s a risk a business won’t pay its VAT bill, they may ask for a bond or deposit payment. This acts as a security against possible late or non-payment.

What is a VAT Notice of Requirement?

HMRC send this to request a business pays a VAT security. This might be because a VAT refund claim is likely to take time to verify, or for large or unusual claims. The security is a condition of issuing the VAT credit.

Why have HMRC asked for a VAT security?

There are several reasons why a business or trader may receive a VAT security request. It could be that you have current or past VAT arrears, or have previous VAT offences. Although a warning letter will usually be issued, it isn’t always the case. If HMRC considers that sending a warning letter increases the likelihood of not being paid, they won’t send one.

 
comprehensive vat returns service

How are VAT securities calculated?

The security is usually the equivalent to the amount of VAT due to be paid to HMRC for a set period, typically four or six months, depending whether you submit monthly or quarterly VAT returns. An amount will be added for any arrears currently outstanding for the business.

The amount of security they request you to pay won’t be any higher than the amount of credit being considered. HMRC will use the information they have at that time to calculate the amount of security. You can also request an independent review or appeal a Notice of Requirement at a tribunal, as long as you request this within 30 days.

Learn more about our online accounting services. Call the team on 020 3355 4047, or grab an online quote.

About The Author

Beth-Anne Bruce

I'm an experienced and fully AAT and ACCA qualified accountant, who is enthusiastic about helping business owners succeed. I also love cooking and needlepoint (at different times!). Learn more about Beth.

More posts by this author
guest
0 Comments
Inline Feedbacks
View all comments

Read more posts...

Umbrella Companies for Self-Employed Contractors

When you set up in business as a contractor you might either work as a sole trader or as a limited company….

Read More

Get Ready for Small Business Saturday UK 2022

Small Business Saturday started in the US in 2010, on the first Saturday following Thanksgiving. It aims to encourage shoppers to consider…

Read More

Architects and Tax

Architecture is a highly diverse sector when it comes to tax. It’s partly down to the type of businesses that carry out…

Read More
Back to Blog...

Confirm Transactions

The number of monthly transactions you have entered based on your turnover seem high. A transaction is one bookkeeping entry such as a sale, purchase, payment or receipt. Are you sure this is correct?

Yes, submit my quote
No, let me change it

Please contact our sales team if you’re unsure

VAT Returns

It is unlikely you will need this service, unless you are voluntarily registered for VAT.

Are you sure this is correct?

Yes, the business is VAT registered
No, let me change it

Call us on 020 3355 4047 if you’re not sure.

Bookkeeping

You only need this service if you want us to complete the bookkeeping on your behalf.

Would you prefer to complete your own bookkeeping?

Yes
No

Call us on 020 3355 4047 if you’re not sure.