Sometimes (mistakenly) they are referred to as an Advanced Payment Notice but the correct term is Accelerated Payment Notice.
An accelerated payment notice (APN) is a requirement to pay an amount on account of tax or National Insurance Contributions. 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). There are over 1,000 tax avoidance schemes that HMRC have, or are, investigating many relating to the Film industry and many going back well over 10 years. These schemes were promoted by accountants and tax advisers and most people joined these schemes in good faith and on advice from specialists but HMRC are now unravelling these schemes and large sums of tax are becoming payable.
An APN 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.
Here are some things you need to know if you have received an APN
Don’t ignore it
Failure to pay an APN, or appeal against it, by the due date could lead to late payment penalties or surcharges becoming due and potential enforcement action being taken to recover the tax or NICs. So, make sure that you take action.
You may not get all your APNs at once
APNs are being issued on a scheme by scheme basis and so, if you are in a number of schemes, you may not get all of the APNs that HMRC plans to issue at the same time.
You can receive more than one APN
APNs are sent out for each year of the avoidance scheme you are in and for each type of tax involved. For example if you have used an employment scheme for two years and that scheme gives both a tax and national insurance advantage you may receive up to four APNs.
So, what can you do if you receive an APN?
You have a right to make representations against the APN. You also have a right to appeal against the underlying tax or NICs that are in dispute.
You can object to an APN under specific circumstances
If you feel the amount quoted is incorrect or the conditions have not been met, you may make a representation which HMRC will consider.
How can we help you?
We have a lot of experience dealing with APN’s and, on your behalf, we can either:-
- Appeal against the decision
- Object to the APN
- Agree a payment plan to repay the amount owed
Please give us a call for an initial chat on how we may be able to help.
For a free no obligation chat to discuss how we can help please call us now (24/7) on 0800 980 2662 or 0161 825 8094.