Since APNs were introduced, the HMRC declared that 60,000 notices have been issued, collecting an estimated £3 billion in upfront payments.*
Many have questioned the legality of the notices deeming them ‘unreasonable, a breach of natural justice and represented an abuse of their rights under the European Convention on Human Rights’. However, the HMRC recently won its tenth successive challenge.
Jane Ellison, UK Financial Secretary, comments:
“The vast majority of avoidance schemes just don’t work. We’re determined to change the economics of tax avoidance by making it harder for the dishonest minority to cheat the system - collecting disputed tax upfront and tough new sanctions for enablers of tax avoidance will mean people will think twice.”
We understand that with just 90 days to pay disputed tax, many taxpayers will struggle to meet the HMRCs demands, due to the significant strain it could place on cash flow. Our dedicated tax funding line provides people that have received APNs with the option to spread the cost of these payments over terms between 12 to 36 months.
"We know that in many cases, people who receive APNs are professionals and entrepreneurs. For a lot of them, finding tens of thousands of pounds up front is going to be incredibly difficult.
If you have received an APN and decided to settle, but you’re not sure how you’re going to find the cash up front, we’re happy to talk you through how you can spread the cost over a longer period.”
Introduced in 2014 by HMRC, Accelerated Payment Notices (APNs) are issued as part of a tax legislation that affects those who have used a tax avoidance scheme.
Both businesses and individuals that have received an APN have just 90 days to make full payment of disputed tax, with no right of appeal. If no payments are made, HMRC can enforce significant penalties, such as late payment penalties and even deductions directly taken from bank accounts, under the Direct Recovery of Debts.
*Correct at time of publication