- APNs—UT decides PAYE determination is disputed tax and provides guidance on assessing reasonableness of belief in APN’s procedural invalidity (Sheiling Properties v HMRC)
- What are the practical implications of this case?
- What was the background?
- What did the Upper Tribunal decide?
- Reg 80 PAYE determination appealed against is disputed tax for APN purposes
- A taxpayer’s belief in the procedural (but not substantive) invalidity of an APN can constitute a reasonable excuse for failing to pay the APN
- Assessing reasonableness of a taxpayer’s belief that the APN is procedurally invalid
- Case details
Tax analysis: In Sheiling Properties v HMRC  UKUT 175 (TCC), the Upper Tribunal (UT) dismissed the taxpayer’s appeal against penalties for late payment of two accelerated payment notices (APNs). The UT confirmed that a determination made under Regulation 80 of The Income Tax (Pay As You Earn) Regulations, SI 2003/2682 (PAYE regs) is, to the extent that it is appealed against, disputed tax within the APN provisions, so that an APN can be issued in respect of such a determination and prevent the due date for payment of any such tax from being postponed, including cancelling any postponement that may have been agreed prior to the issue of the APN. In addition, the UT upheld the decision of the First-tier Tax Tribunal (FTT) that Sheiling had no reasonable excuse for not paying the APNs on time even though its director had a genuine belief that the APNs had been issued unlawfully.
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