Tax deposits and bonds
Tax and duties HM Revenue and Customs (HMRC) can ask for a security on, how long they can keep it and what to do if you disagree.
Overview
HMRC may ask for a deposit or bond if they think there’s a risk you won’t pay your tax or duty on time. They call this a security. If you don’t pay your bill HMRC can use the security to settle it. HMRC won’t accept property or other high value items as a deposit.
HMRC will ask you for a security in a legal document called a Notice of Requirement. This will show:
- how much you must pay
- when you must pay it by
- the different ways you can pay
They’ll normally warn you first unless they think there’s a risk it will make you less likely to pay your tax.
Securities - what taxes and duties, how long for and what you can do
| Tax, Duty or Levy | How long HMRC can keep the security | What to do if you don’t agree to give a security |
|---|---|---|
| PAYE deductions Class 1 National Insurance contributions |
2 years, but HMRC will return the security sooner if they think there’s no longer a risk you won’t pay on time. | Contact HMRC within 30 days of getting the Notice of Requirement. Tell them what you disagree with and why. If you can’t reach an agreement HMRC will tell you about your right to go to an independent tribunal. |
| VAT Landfill Tax Aggregates Levy Climate Change Levy Insurance Premium Tax Machine Games Duty General Betting Duty Pool Betting Duty Remote Gaming Duty |
12 months for a business on monthly returns 2 years for a business on quarterly returns HMRC will return the security sooner if they think there’s no longer a risk you won’t pay on time. |
Ask HMRC for an independent review or appeal to an independent tribunal within 30 days of the date on the Notice of Requirement. Only ask for a review or appeal if you can give more information or think HMRC didn’t follow the facts. |
| Air Passenger Duty | HMRC will keep the security for as long as they feel there is a risk you won’t pay on time. | Ask HMRC for an independent review, or appeal to an independent tribunal within 30 days of the date on the Notice of Requirement. Only ask for a review or appeal if you can give more information or think HMRC didn’t follow the facts. If you then disagree with the outcome of the review, appeal to an independent tribunal. |
See HMRC1 - what to do if you disagree. for more on appeals and reviews.
Find out more about securities.
If you don’t give HMRC a security
If you don’t give HMRC the security, in full, they can take you to court and you may get a fine.
| Tax, Duty or Levy | What happens if you don’t give HMRC a security |
|---|---|
| PAYE deductions Class 1 National Insurance contributions |
It’s a criminal offence not to give the security in full for these taxes/duties. HMRC can take you to court and you may get a fine of up to £5000. |
| VAT Landfill Tax Aggregates Levy Insurance Premium Tax Climate Change Levy |
It is a criminal offence to make taxable supplies if you have not given the security in full. HMRC can take you to court and you may get a fine of up to £5000 for each taxable supply made. |
| Machine Games Duty |
HMRC may refuse to register you for Machine Games Duty. If you’re already on the list they may take away your registration. If you are not registered, anyone in a business contract with you may become liable to pay your duty. |
| General Betting Duty Pool Betting Duty Remote Gaming Duty |
It’s a criminal offence not to give the security in full and HMRC can take you to court. For these duties HMRC can ask for a deposit or bond regardless of whether they think there is a risk you won’t pay or not if you are based: - outside the European Union - in a country that has a mutual agreement with the UK for the collection of tax - in the Isle of Man or Gibraltar |
Problems paying your tax
If you can’t pay your tax or duty on time you can ask HMRC for more time to pay. Use the contact details on the correspondence HMRC sent you, or the list of HMRC contacts for the relevant tax or duty.
If HMRC agree you can have more time to pay they may also withdraw the need for a security.