New powers to tackle PAYE debtors

Halesowen-based chartered accountancy firm Nicklin LLP is advising that HM Revenue and Customs (HMRC) will soon have new powers to tackle companies which fail to pay their employees’ income tax and national insurance contributions.

From April, HMRC will be able to demand an upfront security from firms it deems to pose a serious risk of not paying. In particular, HMRC will be targeting companies which deduct money from their employees’ pay packets but have no intention of paying it to the tax office.

The new measures are an extension of existing powers which HMRC has in respect of VAT, insurance premium tax and environmental taxes.

Harvey Owen, managing partner at Nicklins, said: “Businesses failing to provide a security will face a fine of up to £5,000, which will be enforceable by the courts.

“HMRC has said that employers facing genuine payment difficulties will not be affected by the change.”