Security for PAYE on the way (Full Article)
New provisions will allow HMRC to demand an upfront security payment from employers it thinks run a serious risk of non-payment; failure to come up with the security will be a criminal offence carrying a £5,000 fine. The cash security payment will be held by HMRC or paid into a joint HMRC/taxpayer interest bearing bank account, or be in some form of third party guarantee provided by a bank where withdrawals can only be made if HMRC allows.
There is already a similar facility in place for VAT compliance, so it should not come as a surprise that it is to be extended to other taxes. The Budget notes state that once the regulations are in place for PAYE then this procedure will be extended to include NIC.
