Accelerated payment notices

By Tolley
Personal_tax_img

The following Personal Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Accelerated payment notices
  • Introduction
  • Summary
  • Scope of the accelerated payment rules
  • Penalties
  • Collection proceedings
  • What if the taxpayer subsequently loses the appeal?
  • What if the taxpayer subsequently wins the appeal?
  • Use of APNs by HMRC

Introduction Parliament introduced rules with effect from 17 July 2014 which allow HMRC to require early payments of disputed tax and or national insurance contributions NIC in relation to certain tax avoidance cases HMRC can issue accelerated payment notices APNs to require early payment where those cases are subject to an open enquiry or appeal Until then HMRC generally allowed disputed tax to be postponed under TMA 1970 s 55 pending the outcome of the enquiry or litigation This meant that effectively the taxpayer had a low interest loan from the Government until the case was settled which could be a number of years The rules also reflect Parliament s approach of using tax policy to influence the behaviour of taxpayers and advisers Given the need to pay the tax much sooner it was hoped that the appetite for such avoidance schemes would be reduced This guidance note covers the rules which apply to APNs which are issued to individuals It does not cover APNs issued to partners and partnerships known as partner payment notices PPNs The procedure for PPNs is slightly different see section 2 16 of the HMRC guidance and Simon s Taxes A7 248C For details of how APNs can apply to group relief claims by companies see Chapter 5 of the HMRC guidance and Simon s Taxes A7 248D Summary HMRC can require accelerated tax payments via an APN where the tax arrangement producing the tax advantage is under enquiry or appeal and either the chosen arrangements are notifiable under the DOTAS rules and have been notified HMRC has given a follower notice in relation to the same matter or a GAAR counteraction notice has been given in relation to the same tax advantage The taxpayer has 90 days from the date the APN was given to accept the APN and make the payment specified or make written representations to HMRC either against the validity of the notice or the amount

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