The guidance that HMRC will use to decide who should be asked for a PAYE & NICs Security and the process they will follow has now been published on the HMRC website.

HMRC state that they will seek a security only where there is serious risk to the revenue, and it is intended that this will be done reasonably and proportionately.

High risk businesses and employers are classed by HMRC as being involved in

• phoenixism – repeated insolvency and new company creation;
• repeated refusal to pay until HMRC is about to start bankruptcy or liquidation proceedings;
• suspected tax fraud.

By way of reminder, the power to seek a security was extended to PAYE and NIC from 6 April 2012.

More information on the new power and the updated guidance is available at http://www.hmrc.gov.uk/thelibrary/tax-paye/paye-securities.htm and http://www.hmrc.gov.uk/thelibrary/tax-paye/securities-guidance.pdf