VAT compliance ― security for VAT

Copyright © 2026 LexisNexis
Produced by a Tolley Value Added Tax expert
Value Added Tax
Guidance

VAT compliance ― security for VAT

Copyright © 2026 LexisNexis
Produced by a Tolley Value Added Tax expert
Value Added Tax
Guidance
imgtext

This guidance note describes the circumstances under which HMRC is entitled to request that a taxpayer provides security in respect of VAT credits.

When security will be required for VAT

VAT law gives HMRC the power to require a person who is or is required to be registered for VAT to give an amount of security for the ‘protection of revenue’ (ie where there is a serious risk that the taxpayer will not pay VAT which is or becomes due).

HMRC may require this security to be paid either pre or post-verification.

Pre-verification security may be required where HMRC offers to make payment prior to carrying out a full verification and either:

  1. •

    the claim is for at least £500,000 and HMRC requires time to verify that it is valid

  2. •

    the business has submitted a claim that HMRC has reason to believe may be inaccurate or invalid

  3. •

    HMRC has reason to believe that the business could be involved in missing trader fraud

Post-verificiation security may be required where

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
TAKE A FREE TRIAL NOW
Powered by Tolley+™
  • 20 Jun 2025 09:10

Home/ Tolley Tax Guidance/ Value Added Tax / Errors, assessments and adjustments

Popular Articles

Corporation Tax

Substantial shareholding exemption ― overview

Substantial shareholding exemption ― overviewThe substantial shareholdings exemption (SSE) provides a complete exemption from the liability to corporation tax on the gains generated from qualifying disposals of shares and interests in shares by qualifying companies. No claim is required. Provided

14 Jul 2020 13:44 | Produced by Tolley Read more Read more
Value Added Tax

Supplies of goods and services connected with education

Supplies of goods and services connected with educationThis guidance note provides an overview of the VAT treatment of goods and services provided in connection with supplies of education. This should be read in conjunction with the following guidance notes:•Supplies of education•Local authority

14 Jul 2020 13:44 | Produced by Tolley Read more Read more
Personal Tax

Interest and penalties on late paid tax under self assessment

Interest and penalties on late paid tax under self assessmentInterestIf the capital gains tax, the balancing payment or payments on account of tax and / or Class 4 national insurance contributions (NIC) are paid late, HMRC will charge interest on the amount overdue from the original due date. The

14 Jul 2020 12:00 | Produced by Tolley Read more Read more