Ignoring an HMRC security notice is not a safe option.
HMRC expects either payment or engagement. If neither happens, the situation is likely to escalate quickly.
Can you continue trading?
Continuing to trade without paying the security notice can expose directors to personal liability. In some cases, it may also carry criminal implications, particularly where VAT or PAYE continues to be incurred.
Read more: Do HMRC security notices make directors personally liable?
What action can HMRC take?
HMRC may take enforcement action, including debt recovery or moving towards winding up proceedings.
In practical terms, many businesses find that they cannot continue trading safely if the issue is not addressed.
Why HMRC take this seriously
VAT and PAYE are treated differently because they are collected on behalf of HMRC. Where these are not paid, HMRC is more likely to act quickly.
Can you avoid this outcome?
In some cases, early engagement can help. HMRC may be willing to discuss options where there is a viable business.
Can you negotiate an HMRC security notice?
What should you do?
Start by assessing whether the business can afford the security. If not, take advice before continuing to trade.
What should I do if I receive an HMRC security notice?
Handled early, there are often options. Left too long, the risks increase significantly.