Case Study: HMRC Immediately Withdraws Security Notices

We secured a swift and decisive victory for our clients when HMRC withdrew all security notices within a single day. Our expert legal team acted swiftly, leveraging their deep knowledge of tax disputes to achieve this remarkable result. This success highlights the strength of expert legal representation and the importance of acting quickly when facing HMRC enforcement measures. We have a proven formula for success. If your business is under pressure from HMRC, contact us — we know how to protect your interests and fight for the best outcome.

When HM Revenue & Customs (HMRC) issues a Notice of Requirement to give security, it can create significant challenges for businesses. Our clients faced just such a situation when they received security notices for Pay As You Earn (PAYE), National Insurance Contributions (NICs), and Value Added Tax (VAT). However, with our expert legal guidance, they achieved a decisive victory: HMRC withdrew all security notices in one day. This case highlights the effectiveness of strategic legal action in tax disputes and demonstrates how businesses can successfully challenge HMRC’s demands for security.

HMRC Notice of Requirement to Pay Security

HMRC can issue a Notice of Requirement (NOR) demanding a bond or deposit as security if they believe a business is at risk of not paying its tax liabilities. These security notices can cover various taxes, including:

• PAYE and NICs: These notices ensure that employers meet their obligations to deduct and remit income tax and national insurance contributions from their employees’ wages.
• VAT: HMRC may require security for VAT if they perceive a risk that a business will not pay its VAT.

If a business fails to pay a VAT return, assessment, or PAYE/NIC bill on time, HMRC might demand security to cover future tax liabilities. Ignoring a security notice can lead to severe consequences, including penalties, fines, and even criminal prosecution.

Ava Estell Limited & Yaw Okyere v HMRC

In July 2024, Ava Estell Ltd received Notices of Requirement to give security for PAYE, NICs, and VAT, totaling a significant amount. Mr. Yaw Okyere was also made jointly liable for the PAYE and NICs security. Ava Estell Ltd engaged us to challenge these notices.

Recognising the urgency, our expert tax disputes team swiftly filed a Notice of Appeal with the First-Tier Tribunal (FTT) on 17 October 2024. We also submitted a request for review, made robust representations on behalf of the clients and put forward a Time to Pay (TTP) proposal to HMRC.

HMRC Withdraws the Security Notices

The result was remarkable: Within one day, on 18 October 2024, HMRC withdrew all security notices. This outcome underscores the power of a well-prepared appeal and strategic negotiation in tax disputes.

Challenging HMRC Security Notices

The success in this case highlights several key strategies for businesses facing similar situations:

• Seek Legal Advice Early: Engaging experienced tax solicitors ensures compliance with procedural rules and strengthens your appeal.
• File a Proactive Appeal: A timely and well-supported appeal demonstrates a commitment to resolving the issue and encourages HMRC to review its decision.
• Negotiate a Time to Pay Arrangement: Presenting a TTP proposal shows a willingness to meet your obligations and can lead to a negotiated settlement.

Our specialist tax dispute team played a pivotal role in securing this outcome for Ava Estell Ltd. The primary objective was clear: to have the Notices of Requirement cancelled—and we delivered precisely that. This case demonstrates the effectiveness of expert legal representation in prompting HMRC to withdraw enforcement actions when presented with a robust and well-prepared appeal.

Appealing to HMRC First: A Crucial Step

Before heading to the tribunal, businesses should usually file an appeal with HMRC. A well-drafted appeal can convince HMRC to withdraw or reduce the notice.

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The Role of Expert Legal Representation

This case highlights the importance of engaging experienced tax solicitors who can craft a comprehensive, legally sound, and effectively presented appeal. Our specialist tax dispute team played a pivotal role in securing the successful outcome for Ava Estell Ltd.

Can an HMRC Security Notice Be Withdrawn?

Yes, it is possible to have an HMRC security notice withdrawn. The key reasons why HMRC may withdraw a notice include:

• Successful appeal: If an appeal is lodged with HMRC and provides valid legal grounds, the notice may be cancelled.
• Negotiation: If a business successfully negotiates a TTP arrangement with HMRC, security may no longer be required.
• Procedural errors: If HMRC has issued a security notice incorrectly or failed to follow proper procedures, it can be withdrawn.
• Change in circumstances: If a business’s financial situation improves or it proves compliance, HMRC may reconsider the notice.
• Legal representation: A well-prepared legal argument presented by experienced lawyers can lead to the withdrawal of the notice.

Expert HMRC Tax Dispute Solicitors

If your business faces an HMRC security notice, we can provide expert legal assistance. Our experienced team offer tailored solutions for businesses facing HMRC enforcement actions. They can assist with:

• Advising on compliance to avoid future HMRC enforcement
• Challenging PAYE, NICs, and VAT security notices
• Filing appeals with HMRC and the tax tribunal
• Negotiating with HMRC for settlements and Time to Pay (TTP) arrangements
• Representing clients in the First-Tier Tribunal (Tax Chamber)

We understand the complexities of tax law and are dedicated to achieving the best possible outcome for our clients. Contact us today for on ☎ 02071830529 | ✉ [email protected]