HMRC decision to require security for PAYE liability

The taxpayers were businesses of which G was director and sole shareholder. The businesses were formed in December 2015 and registered for PAYE in early 2017. Each entity took over a previous one owned by G. HMRC issued notices of requirement to give security against which G appealed. When the notices were made the previous companies owed HMRC more than £400 000.

The First-tier Tribunal noted that G had repaid some of the debt since the notices were issued but said it was unable to take account of subsequent events. Its role was to decide whether HMRC had acted reasonably in issuing the notices given that its power in reg 97N of the Income Tax (PAYE) Regulations 2003 was ‘broad’ and ‘unfettered’. Further it noted that since their issue more of G’s companies had gone into liquidation owing about £300 000.

On G’s statement...