SolvedSG65300 | The security: using security: demanding payment of a relevant debt: offsetting security against accrued relevant debt - VAT/environmental taxes
From HM Revenue & Customs · Securities Guidance
Where a person has accrued a relevant debt after they have given security, send the letter Request for payment.
The letter gives the person 7 calendar days in which to pay the debt. You cannot recover debt which is under appeal.
BF your case for 14 days. If the relevant debt remains unpaid after 14 days you should offset as much security as you need against the debt.
Relevant debt is explained in SG65150.
Where the person has paid a security deposit you should ask the Southend Direct Receipts Team to make payment to the person’s tax account, for example to their account on the VAT Mainframe. Advise the Team of
the person’s name
their registration number
the Miscellaneous Cash Deposit (MCD) number.
Write to the person, using letter Off set security, to advise them of the action that has been taken.
After 14 days check VISION to make sure the offset has taken place.
If you require the person to give further security to top up the amount held, see SG68000.
You should lift the Default Surcharge inhibit, using Form VAT719, if all of the security deposit is used.
If the person has deregistered for VAT/environmental taxes take no action until the final liability (period 99/99) is on file.
Continue to monitor the person’s compliance until security is no longer required.