The following Personal Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
Accelerated payment notices (APNs) were introduced with effect from 17 July 2014 and 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 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.
The rules for APNs were extended with effect from 26 March 2015 to deal with cases where companies surrender losses under the group relief rules. Further information on how APNs operate in the context of group relief is provided below.
This guidance note covers the rules which apply to APNs that are issued to individuals or companies (including APNs which relate to PAYE and NIC liabilities issued to such persons as employers). 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.
References in this guidance note to ‘taxpayer’ include corporate taxpayers (ie where the APN has been issued to a company).
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
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
IntroductionUK tax must be withheld on UK payments including:•interest•royalties•rental incomeWithholding tax may be reduced under double tax treaties (DTT) or European directives, both of which may be subject to making a formal claim.This guidance note outlines the rules for UK withholding tax, and
This note offers guidance in respect of the administration of company tax returns. If a company or organisation is subject to corporation tax they will have to complete and file a company tax return for each accounting period. A company or organisation must, in the main, file a return even if they
Summary of capital allowances on carsThe current capital allowance rates applicable to cars are as follows:Pool typeDescription of carRateLegislationMain rate poolNew and unused cars with CO2 emissions over 50g/km but not more than 110g/km (to be reduced to 50g/km and below from April 2021)18%CAA
The corporate interest restriction (CIR) essentially limits the amount of interest expense a company can deduct from its taxable profits if the interest expense is over £2 million. The actual mechanics of the CIR calculation are highly complex (the legislation is over 150 pages long) and are
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.