Changes are being made from 6 April 2012 which will allow HMRC to ask certain employers to pay a security where there is a risk of deliberate non-payment of PAYE.

The required security will usually be either a cash deposit from the business or director-held by HMRC or paid into a joint HMRC/taxpayer bank account-or a bond from an approved financial institution which is payable on demand.

HMRC will calculate the amount of the security on a case by case basis-depending on the amount of tax at risk, the previous behaviour of the employer and other risks. Those being required to pay a security can appeal against this decision. As with VAT, if an employer fails to provide the security for PAYE or NICs, HMRC can prosecute with a fine.

More information on the new arrangements is avail-able at http://www.hmrc.gov.uk/thelibrary/tax-paye/paye-securities.htm#4