Commentary

A7.248 Accelerated payment notices

Administration and compliance

A7.248 Accelerated payment notices

Accelerated payments

A7.248 Accelerated payment notices

Whilst HMRC is able to deny a repayment of tax in certain cases while a dispute is resolved1 (see A4.220), under self assessment, the taxpayer is able to claim the effect of a tax advantage while the enquiry and any subsequent tax appeal is unresolved.

This ability for the cash flow advantage to rest with the taxpayer was restricted with effect from 17 July 2014. From this date, HMRC has the power to issue an accelerated payment notice (APN) to any taxpayer for whom there is an open enquiry, or a matter is under appeal where certain conditions are met (see below)2.

The taxpayer is required to pay the tax in dispute within 90 days (or a further 30 days where the taxpayer requests that HMRC should reconsider the amount)3. Where the matter is under appeal, the notice removes any postponement of the disputed tax. An unresolved referral of a partnership share dispute to the Tribunal is ignored for these purposes4. Penalties apply for late payment (see A7.248B)5.

It should be noted that the accelerated payment is intended to represent only a payment on account of the additional amount that the taxpayer would have to pay for the chargeable period if the avoidance scheme fails. It may not necessarily be the total tax involved in the appeal or dispute.

HMRC publishes a list of schemes where users may be issued with an APN. The list is updated regularly.

HMRC has published guidance on APN, and there are a

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