From 6th April 2012 HM Revenue & Customs (HMRC) will be able to ask employers to pay a security where there is serious risk that they won’t pay over their PAYE tax deductions or Class 1 National Insurance contributions (NICs).

The required security will usually be either a cash deposit from the business or director – held by HMRC or paid into a joint HMRC/taxpayer bank account – or a bond from an approved financial institution which is payable on demand.

HMRC will focus on employers who:

o – deliberately choose not to pay tax

o – evade tax by becoming insolvent and then set up a new company the next day in order to continue trading

o – have no qualms about building up large PAYE/NIC debts

o – do not respond to HMRC’s attempts to contact them