HMRC powers - Part I | Tax Guidance

HMRC powers - Part I

By Tolley

The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

HMRC powers - Part I
Powers
Appeals and reconsiderations
Recovery of VAT
Partnerships
VAT due to other EU member states
Joint and several liability for unpaid VAT
Taking control of goods for unpaid VAT
Investigations conducted under the PACE
Obtaining debtor contact details

This guidance note provides an overview of HMRC’s main powers. Where applicable, there are links to other guidance notes that provide more information. This note should be read in conjunction with the HMRC powers - Part II guidance note.

Powers

Security

HMRC has the following powers to require that a taxable person provides security in the following circumstances:

De Voil Indirect Tax Service V5.186, V5.225 (subscription sensitive)

a)if HMRC considers that it is necessary for the protection of the revenue, they can require, as a condition of making any VAT credit, that the taxable person provides security that covers the amount of the payment if this appears to be appropriate under VATA 1994, Sch 11, para 4(1A); FA 2003, s 17(3) (subscription sensitive)
b)if HMRC considers that it is necessary for the protection of the revenue, they may require a taxable person, as a condition of his supplying or being supplied with goods and services under a taxable supply, to provide security that covers the payment of any VAT that is or may become due from the taxable person. HMRC will determine the amount of security required and the method by which the person must give that amount under VATA 1994, s 48(7), Sch 11, para 4(2)(4)(5); FA 2003, s 17(4) (subscription sensitive)
c)if HMRC deems it necessary for the protection of the revenue, they may require a taxable person, as a condition of his supplying or being supplied with goods and services under a taxable supply, to provide security to cover the payment of any VAT that is or may become due from any person by or to whom goods or services supplied by or to the taxable person are supplied. HMRC will determine the amount of