Value Added Tax Act 1994 Schedule 11 paragraph 4

Power to require security and production of evidence

Schedule 11 paragraph 4 deals with HMRC's powers to require evidence in support of input tax claims, and to demand security deposits to protect the revenue in connection with VAT credits and taxable supplies.

• HMRC may require specific evidence to be produced before allowing or repaying input tax to any person.
• Where HMRC consider it necessary to protect the revenue, they may require security as a condition of making any VAT credit, in an amount they consider appropriate.
• HMRC may also require a taxable person to provide security for any VAT due, or potentially due, from that person or from anyone involved in supplying or receiving goods or services to or from that person, as a condition of making or receiving taxable supplies.
• The amount and manner of any security required are at HMRC's discretion, and these powers operate independently of HMRC's separate powers under section 48(7) relating to VAT representatives.