Re-appearance of the HMRC Security bond

HMRC are beginning to issue bonds to some trading companies. A security bond is considered by HMRC where they consider that they may not receive the amount due to them.

The bond is a pre-determined financial amount that is levied on you and it normally follows a letter warning you of the amounts unpaid.

The reasons for a bond being issued may be for one of the following reasons:

• You start a new business after leaving a previous business with HMRC debt
• You are in a time to pay arrangement and default on a payment
• HMRC believes you are insolvent
• You deliberately do not pay HMRC and have not been co-operative.

You can appeal against the decision.

If you receive a bond and do not pay the bond then you can be taken to court if continue to trade with financial fines of up to £20,000.

If you have any queries with regard to this then please contact us.