Everything you need to know about your accelerated payment notice

First, Tax Avoidance or Evasion?

Tax evasion means illegally hiding activities from HMRC to avoid Tax. Tax avoidance is a means of exploiting legal loopholes to avoid tax.

What is an Accelerated Payments Notice (APN)?

An accelerated payment notice (APN) is a requirement to pay an amount on account of tax or National Insurance Contributions (NICs). HM Revenue and Customs (HMRC) issues accelerated payment notices (APNs) to taxpayers involved in avoidance schemes disclosed under the Disclosure of Tax Avoidance Schemes (DOTAS) rules, or counter-acted under the General Anti Abuse Rule (GAAR). They can also be issued to taxpayers who have received a Follower Notice in relation to the scheme. The effect of the notice is to ensure that disputed tax or NICs rests with the Exchequer in an avoidance case, so removing the cash flow advantage enjoyed by users of tax avoidance schemes and the benefit they currently have over the majority of taxpayers who pay their tax and NICs up front.

5 things you need to know if you have received an APN:

1. You must Pay within 90 days

If you have no valid dispute, the amount due must be paid within 90 days of the Notice being issued. This can be done in instalments or a lump sum.

2. Don’t Ignore it

Failure to take action / make payment within the due date will result in penalties for late payment being added to the amount due. Enforcement action will be taken to recover the amount.

3. You can receive more than one APN

If you have been involved in more than one scheme, you could be issued with more than one APN. These can arrive at different times, depending upon when HMRC decides to issue the APN.

4. The APN liability is not your tax liability

Paying the APN balance will only cover the tax advantage gained from the scheme. This means that any actual liability incurred in the normal manner will still need to be paid.

5. Appeal rights

You have a right to appeal against the APN. If you feel that the amount quoted is incorrect of the conditions have not been met then a representation can be made to HMRC as long as it is received within 90 days. HMRC will consider each representation and respond with their conclusion.

What can be done if I receive a APN?

We have increasingly been asked for advice from Directors and sole traders faced with an Accelerated Payment Notice. We expect this issue to gather more pace and urgency the closer we get to the payment deadline. We can assist directors by liaising with HMRC on their behalf as well as offering advice on restructuring and refinancing to release funds from a company to meet demands for payment. HMRC powers become ever more forceful and it is more important than ever to engage with them at an early stage with an experienced adviser. You can read more about Accelerated Payment Notices online.

Contact an Insolvency Practitioner

If you require the support of an insolvency practitioner to deal with your accelerated payment notice, get in touch with The Insolvency Experts today. You can call us directly on 0300 303 8284 or contact us online.