Accelerated Payment Notices were first introduced in 2014 and have since been used by HMRC in order to recover billions of pounds of taxes. The notice states that HMRC believes that the recipient has willingly partaken in a tax avoidance scheme and therefore are required to pay the amount that has been wrongfully avoided within a 90-day period.
What Tax Avoidance Schemes can incur an APN?
The Disclosure of Tax Avoidance Schemes– which can be found on gov.uk, details which schemes can incur an accelerated payment notice. This will be served when the taxpayer has been caught by the General Anti Abuse Rule or as a result of their participation in the avoidance scheme, has received a follower notice.
For the APN to then be issued it must be seen that there is an open tax enquiry for a return or claim by the taxpayer and this return must be made provided the taxpayer has received a tax advantage from the scheme.
What should I do if I receive an APN?
If you have received an APN, there is no method of negotiating or appealing the notice. You cannot request an extension on the 90-day payment period or challenge the amount owed. The only aspect of an APN you are allowed to appeal is that you do not feel the conditions of the APN have been met or the amount specified is incorrect.
This must be done within the 90-day period and within this time HMRC will inform you of their decision. It is important that if you believe that requirements have not been met that you make the relevant representations in this time period.
If HMRC do not withdraw the notice or amend it, you then have 30 days from that time to pay the amount owed. For more information, get in touch with One Click today.