HMRA4120 – Refusal/cancellation: Do you need to consider the size of debt before cancelling/refusing registration?

Yes, you should decide if refusal or cancellation is proportionate for the amount due. Where the amount is substantial, the risk to the revenue should be taken into account when making your decision. On the other hand, cancellation or refusal because of a small debt would not be appropriate.

The size of debt and general standing of the business should be considered; for example, £50,000 due from a small business may be a higher risk than the same amount due from a multi-national company.