HMRC may require a person to give security or further security, for example due to a poor compliance record or a significant risk of insolvency or ‘disappearance’. Also, HMRC may ask for security when a large or unusual VAT repayment claim makes HMRC consider that the repayment represents a risk and they need time to check the claim. For example, HMRC may require security:

•as a condition of allowing or repaying any input tax and HMRC may also require the production of such documents relating to VAT as may have been supplied to the taxable person;