HMRC powers ― Part I

Produced by Tolley

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

  • HMRC powers ― Part I
  • Powers
  • Security
  • Production of evidence
  • Direct recovery of debts
  • Appeals and reconsiderations
  • Recovery of VAT
  • Recovering input tax
  • Partnerships
  • England and Wales
  • More...

HMRC powers ― Part I

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across the UK’s VAT and customs regime. This document contains guidance on subjects potentially impacted by these changes. Before continuing your research, see the Brexit — overview guidance note.

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:

  1. 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)

  2. 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)

  3. 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

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