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DMBM875660 | RLS: action in Tracing Group: customer traced - security

From HM Revenue & Customs · Debt Management and Banking Manual

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Under paragraph 4(2)(a) of Schedule 4 to the VAT Act 1994, for protection against potential loss of revenue, and as a condition of taxable supplies being made, HMRC require a customer to provide security for the payment of any VAT that is or may become due from him.

Poor or non-compliant businesses, and businesses that fail to comply with their VAT obligations, are symptoms of potential revenue loss. When you trace a customer who is restored to the VAT register or re-registered, consider referring the case to your Securities Team (Special Civil Interventions) who will give advice on parameters for referrals.