Accelerated Payment Notices FAQ
Celebrities and sportsmen are among the thousands of taxpayers receiving accelerated payment notices from HM Revenue & Customs (HMRC) for taking part in alleged tax avoidance schemes.
Accelerated payment notices (APN) are a new tool for HMRC to wield against wealthy taxpayers – but contractors, landlords and many less well-off individuals are also on HMRC’s hit list.
Here, we explain what an accelerated notice is and what to do if you receive one:
What is an accelerated payment notice?
An APN is a tax demand from HM Revenue & Customs (HMRC) issued to a taxpayer involved in a tax avoidance scheme notified under rules called Disclosure of Tax Avoidance Schemes (DOTAS). Taxpayers merely tick a box and enter a DOTAS number on their tax return to confirm they are part of one or more schemes.
Why did I get an APN?
Because you are in a scheme considered as ‘aggressive’ tax avoidance by HMRC. New laws say that instead of HMRC proving a tax avoidance scheme is illegal, taxpayers have to show their actions are legal.
On notification of a DOTAS number, an APN is issued for the amount of money the taxpayer hopes to save and the cash is refunded if the scheme is proved to work.
When is the tax demanded due?
HMRC wants the entire amount paid in full 90 days after the issue of the APN.
What happens if the APN is not paid?
Delaying payment in whole or part can lead to fines, interest and other charges added to the amount. In some cases, HMRC might consider taking the cash straight from a bank account or other enforcement action.
Can HMRC issue more than one APN?
Yes. If you have invested in several tax avoidance schemes, HMRC can issue an APN for each one. You may also receive an APN for one scheme if more than one tax is involved, such as income tax and national insurance contributions. In some cases, HMRC may issue APNs for each tax year an avoidance scheme runs through.
Can APNS be appealed?
Yes. If you believe the APN was wrongly issues, the amounts specified are incorrect or have a reasonable excuse for not paying, you can make representations to the tax officec issuing the APN.
