VAT compliance ― security for VAT

Copyright © 2025 LexisNexis
Produced by a Tolley Value Added Tax expert
Value Added Tax
Guidance

VAT compliance ― security for VAT

Copyright © 2025 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

Owner-Managed Businesses

Wholly and exclusively

Wholly and exclusivelyFor both income tax and corporation tax purposes, one of the fundamental conditions that must be satisfied for an item of expenditure to be deductible, is that it must incurred ‘wholly and exclusively’ for the purposes of the trade, profession or vocation. References to CTA

14 Jul 2020 14:00 | Produced by Tolley Read more Read more
Personal Tax

Payment of the remittance basis charge

Payment of the remittance basis chargeRemittance basis chargeThe remittance basis charge is an annual charge payable by ‘long-term’ UK residents for the privilege of claiming the remittance basis.Taxpayers who wish to utilise the remittance basis (but do not qualify for it automatically) must pay

14 Jul 2020 12:52 | Produced by Tolley Read more Read more
Corporation Tax

Qualifying charitable donations

Qualifying charitable donationsCompanies can obtain corporation tax relief for qualifying payments or certain transfers of assets to charity under the qualifying charitable donations regime. Definition of qualifying charitable donationThe definition of ‘qualifying charitable donations’

14 Jul 2020 13:03 | Produced by Tolley Read more Read more