SG25530 - Security for tax at risk of being unpaid: monitoring compliance: when to ask for monthly returns

Directing a person to make monthly returns, and then closely monitoring their compliance, enables us to limit the amount of VAT and/or environmental tax debt a person may build up. It is an alternative to, or may be combined with, a requirement to give security. Each case should be judged on its own merits.

Please check that there is no active MTIC involvement before recommending that the person is directed to make monthly returns. Check all Departmental data sources (EF, Caseflow, DTR etc) to ensure there is no MTIC interest.

If you decide that security is not presently required but that the person’s compliance should be monitored, issue a Notice of Direction (NOD) to make monthly returns, see SG25540.

In the Notice of Requirement, we will give the person the option of making monthly returns in which case we will require a lesser amount of security, see SG32000. If the person takes up the option issue an NOD to make monthly returns.