New powers are being introduced this spring to tackle companies who try to dodge paying the required PAYE or National Insurance contributions.

From April, HM Revenue & Customs can make employers pay a security if there is a serious risk that they won't be able to pay their staff's taxes.

The new power will be targeted at employers who deduct money from employees' pay packets – under the pretext of paying the taxes for them – but keep hold of the money.

The required security will usually be either a cash deposit from the business or director, or a bond from an approved lender that is payable on demand.

Leicestershire businesses that fail to provide a security face a fine of up to £5,000.