Notice of Requirement

25th February 2019 Business Crime

What is a Notice of Requirement issued by HM Revenue & Customs?

A Notice of Requirement (NoR) is a request by HM Revenue & Customs (HMRC) to pay a security or deposit. They are normally issued when HMRC believe that there is a risk that a company will not pay their future tax liabilities.

This year alone I have received a large number of enquiries from clients who have received a Notice of Requirement, somtimes out of the blue, from the Fraud Information Service (FIS) based at HMRC.

More than one person connected to the company may be asked to make the payment.

I have received a Notice of Requirement what should I do?

Seek professional advice without delay. The consequences can be catastrophic on a business and the directors or persons with significant control. Do not ignore it and if you do expect to find yourself in court to answer a criminal charge.

You may be able to negotiate payment terms with HMRC to prevent. You may also request a review or appeal the decision.

Why have I been issued with a Notice of Requirement?

Are you in arrears with VAT, Corporation Tax, National Insurance Contributions, PAYE or other tax? Are you a director of a company that has recently liquidated your company with outstanding tax liabilities?

These are 2 common reasons that a NoR can be issued.

I have received a notice to appear before the Magistrates in connection with the Notice of Requirement.

As it is a criminal offence not to comply with the requirement, you will be requisitioned to appear at court if you do not make the payment requested. It is a strict liability offence.

If you have continued to trade following the NoR then you may be personally liable for the sum.

How can we help?

We can review the case papers and check the validity of the NoR. HMRC must show that they had good cause to issue the NoR, that it was duly served and that you did not meet your obligations under the requirement. If the Crown can prove their case, we are able to present mitigation on your behalf to ensure the best possible outcome and avoid hefty fines sometimes running into tens of thousands of pounds. Not only will the Crown seek a fine against you personally and/or the company but will also seek compensation.

I have been very successful in keeping the fines and compensation to a minimum. Please do not hesitate to contact me should you require any assistance.


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Hojol Uddin is a Partner and Head of Department located in Manchesterin our Driving Offences department

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