What is the fine for failing to provide HMRC with security for PAYE?

The fine for failing to provide HMRC with security for PAYE is indeed up to £5000. This penalty serves as a financial incentive for employers to comply with their obligations related to PAYE (Pay As You Earn) tax collection. The rationale behind imposing such fines emphasizes the importance of timely and accurate remittance of taxes withheld from employee earnings. Security is often required when HMRC believes there is a risk that the employer may not be able to meet their tax obligations.

The other options reflect different fine amounts but do not align with the established guidelines set by HMRC regarding PAYE security requirements. Understanding the specific figure reinforces awareness of the severity of consequences employers can face for non-compliance, and underscores why it is critical for businesses to maintain proper tax practices.