Budget 2010: HMRC wants 'security' from non payers
Failure to offer security will be a criminal offence
Employers who habitually fail to pay up the PAYE they owe will have to
provide “security” to HM revenue & Customs and could face criminal charges
if they fail to meet their obligations and could face a fine of up to £5,000.
the demand will will be introduced from April next and was hidden deep inn
the Budget press notices out today.
The details will be set out in regulations to be published by HMRC for
the value of the security will be set by HMRC in relation to the sum of tax
There was early speculation that the measure would hurt struggling football
clubs in particular.
Cathy Corns, tax partner at Mercer & Hole, said: “If you are talking
about football clubs this will hurt if they are paying players more than they
can afford in tax.”
Portsmouth recently became the first Premier League club to go into
administration owing HMRC £11.5m.