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While we still require security we can use some or all of it to satisfy any amount of a relevant debt, which is not under appeal, that is or may become due to HMRC.

The term ‘relevant debt� means the tax for which security has been given. For example, if an employer gives security for PAYE/NICs we cannot use any part of that security to satisfy a VAT debt that existed before we required security, or which arose after they gave security, until we no longer require the PAYE/NICs security.

You cannot use a security deposit to recover VAT default surcharge or penalties until we no longer require security.

Where a person had a relevant debt when the Notice of Requirement (NOR) was issued, and still has a relevant debt after they have given security, see SG65200 for VAT/environmental tax cases and SG65250 for PAYE/NICs cases.

Where a person has accrued a relevant debt since the NOR was issued, see SG65300 for VAT/environmental tax cases and SG65350 for PAYE/NICs cases.

You should consider requesting further security to top up the amount held to its original level, see SG68000.

Once we no longer require security we can set-off some or all of a security deposit against any debt to HMRC, see SG66300 for VAT/environmental tax security deposits and SG66350 for PAYE/NICs security deposits.