The Finance Act 2014 permits HMRC to issue an Accelerated Payment Notice (APN), demanding up-front payment of the tax in dispute in an open enquiry or appeal, or where a person has entered into a tax planning arrangement that was notified to HMRC under the Disclosure of Tax Avoidance Schemes (DoTAS) regulations. For those who have invested through a partnership, a Partner Payment Notice (PPN) may be issued to individual partners and these operate in a similar way to an APN. A Follower Notice (FN) can be issued if HMRC has won a case against another taxpayer that HMRC believes is “relevant to” your arrangement(s). HMRC anticipates issuing some 64,000 such Notices will help to bring in £5.5b by 2020.
Typically, an APN/PPN/FN will seek payment of an amount equal to the full tax relief claimed by the person. The amount demanded is regarded as a payment on account of any final liability. When and if the Tribunal decides upon the tax planning arrangement, the final liability (if any) will then be determined, including interest, and the amount paid under the APN/PPN/FN will then be deducted and any excess repaid (unless a higher appeal is to be heard in the Courts). A Notice is payable within 90 days of its issue or 30 days after a decision by HMRC on any representations received concerning how the tax in dispute has been calculated. If it is paid late, there is no interest but a 5% surcharge is added, rising to 10% after five months and 15% after 11 months. HMRC will send a “warning letter” two to four weeks before any Notice is issued.
How can we help?
Our team can help in assisting clients in receipt of an APN/PPN/FN, through a five-staged service approach:-
Review the accuracy and validity of any Notice issued to you and advise you of an amount likely to be demanded where unissued.
Where challenge has been identified as an option from our Review, such as the validity of its issue and amount demanded, we will advise you of the best options available to you, including making representations to HMRC and/or Judicial Review.
Liaising with our HMRC Specific Point of Contact to minimise your potential exposure, including the negotiation of any time to pay arrangement that reflects your ability to pay. We will also discuss and confirm the position of any and all tax planning arrangements of which you are yet to receive a Notice to allow you to plan for future likely events.
Advise you of the best possible settlement terms with HMRC, including any available open HMRC settlement opportunities.
Provide you with advice that best protects both your personal and business assets where settlement terms and/or payment are unachievable based on your means.
Putting it simply, we provide a discreet and comprehensive service that is tailored to meet your unique needs and protect your interests.
Request a callback or meeting
If you'd like us to give you a call, fill in your details below and we'll email to arrange a good time to speak to our Head of Tax investigations team, Mark Taylor. All communications are in the strictest confidence.