SG26700 - Security for tax at risk of being unpaid: How long we will hold a PAYE/NICs security

We must specify in the Notice of Requirement (NOR) the period for which security is required.

The standard period for which we require security to be given is 24 months. We will review the need to retain security at any time on request and at 12 and 18 months.

If

• at the end of the period specified on the NOR or
• your review shows the employer’s PAYE/NICs compliance is satisfactory, and there is no chance that you will require new security before the end of the original two year retention period

you should repay it to the person(s) who gave security (PGS) after setting-off any amount you need to settle that PGS’s other debts to HMRC, see SG62000. You cannot retain security for longer than the period specified on the NOR.

Successfully monitoring compliance during the retention period may mean asking for further security to top up the level to the original amount you required, see SG68000.

If, at the end of the period specified on the NOR, there is still a risk to the revenue you must repay the security to the PGS after

• using security to clear the employer’s PAYE/NICs debt, see SG65100 and
• setting-off any amount you need to settle that PGS’s other debts to HMRC, see SG66350.

You should then consider what further security action to take, see SG24100.