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

Foreign exchange issues

Foreign exchange issuesOverview of foreign exchange provisionsForeign exchange (FX) movements are generally taxed following the rules applicable to the underlying income, expenditure, asset or liability on which they arise, broadly as follows:Capital assetsOn a realisation basis (ie on disposal)

14 Jul 2020 11:44 | Produced by Tolley Read more Read more
Employment Tax

Subsistence expenses

Subsistence expensesIntroductionSubsistence is the amount incurred as a consequence of business travel. Typically it relates to accommodation and meal costs incurred. These amounts are allowed because they are associated with the necessary travel which is not to a permanent workplace. See the Travel

14 Jul 2020 13:43 | Produced by Tolley in association with Philip Rutherford Read more Read more
Employment Tax

Parking provision and expenses

Parking provision and expensesCar parking facilities at or near to the employee’s workplaceThere is an exemption from tax and NIC where an employer provides parking, or pays for or reimburses an employee for the costs associated with car parking at or near the place of work; there are no reporting

14 Jul 2020 11:09 | Produced by Tolley Read more Read more