SG29700 - Security as a condition of releasing a VAT credit: the letter of offer

The letter of offer

• formalises discussions that have taken place with the person about their repayment claim and HMRC’s requirement for security
• emphasises that enquiries into the claim are ongoing
• sets out what are the accepted forms of security
• tells the person that we are offering to make the repayment while we enquire into their claim subject to receiving security.

You should issue a letter of offer before the Notice of Requirement to give security (NOR) is served where a person asks for payment prior to full verification of the claim.

You should enclose factsheet SS/FS2b with the letter of offer.

If the person does not take up the offer you can retain payment until the claim is fully verified.

If the person offers to provide security you should issue an NOR, see SG29800.