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HMRC start to issue accelerated payment notices PDF Print E-mail
Tuesday, 11 November 2014 16:20

HMRC have started issuing accelerated payment notices to those who have used tax avoidance schemes.

Tax legislation was introduced on 17 July 2014 giving new powers to HMRC to demand upfront payments of the disputed tax from taxpayers who have used tax avoidance schemes before the final amount has been agreed. Accelerated payments are designed to remove the cash advantage of sitting and waiting while the enquiry is ongoing or a tax appeal is pending. Late payment penalties of up to 15% may be imposed.

The types of scheme HMRC are targeting include marketed investment products such film partnerships and arrangements whose main purpose is to reduce tax.

Before HMRC can issue an accelerated payment notice, the following conditions mus be met:

  1. An enquiry into tax return of the person or company using the scheme is in progress;
  2. The scheme offers a tax advantage
  3. HMRC have notified the person or company that they believe the scheme used offers a tax advantage.

If you believe HMRC has not met one of the above conditions or that the accelerated tax payment is incorrect, you can make an appeal within 90 days.

Where the upfront payment will cause hardship, you can ask HMRC for time to pay.

How we can help
If you have received an accelerated payment notice and are unsure what to do, please  contact us to discuss your options.


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