From 5 April 2012 HMRC will be able to ask employers to pay a security deposit where there is serious risk that they won’t pay over their PAYE or Class 1 NICs.
HMRC have said that they will use this power “to target those employers who have a record of using bankruptcy and phoenixism as a way of stepping away from their creditors, leaving debts unpaid with HMRC and legitimate suppliers.” It is similar to the regime that exists for VAT, insurance premium tax and environmental taxes. In the same statement HMRC said that it “will not use these powers where a business is having genuine financial difficulties.”
