Her Majesty's Revenue and Customs (HMRC) is introducing new powers to tackle those businesses which fail to pay their required pay-as-you-earn (PAYE) or National Insurance contributions.From April 2012, where there is a "serious risk" that a business will not pay its contributions, HMRC will be able to require them to pay a security of either a cash deposit from the business or director, or a bond from an approved financial institution that is payable on demand.
HMRC will determine the amount of security on an individual basis depending on the risk involved.
"This is an extension of a power that has already been successfully used for VAT, insurance premium tax and environmental taxes, and will not affect employers who have genuine payment difficulties," HMRC said.
Non-compliant firms will be taken to court and face a fine of up to £5,000.
Ending up in court is possible for any business - even those that act within the law.
Business insurance policies that provide commercial legal protection can provide assistance to businesses should they end up in front of a judge.
