HMRC gained new powers in 2014 to issue Accelerated Payment Notices (“APN’s”) across a range of circumstances.
APN’s demand an advance payment of tax even in circumstances where HMRC are continuing to investigate the question of whether the tax ought to be paid or where an appeal to a tax tribunal remains outstanding. It really is a question of ‘pay first and argue later’.
WHEN MAY AN APN BE MADE?
Ordinarily, an APN will be issued by HMRC where a taxpayer has entered into arrangements which give rise to a ‘tax advantage’, where that ‘tax advantage’ is subject to an ongoing enquiry or appeal, and one of the following applies –
WHEN MUST A PAYMENT BE MADE?
Ordinarily, a payment must be made within 90 days of the date of the notice. Representations can be made to HMRC within this 90 day period.
Following a decision released by HMRC on those “representations” a payment must be made within 30 days.
NO RIGHT OF APPEAL
The legislation implementing APN’s contains no right of appeal to an independent tax tribunal. This is unusual and reflects the a hardened approach by the Government to the collection of tax revenues.
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