Have you used a tax avoidance scheme (DOTAS or non-DOTAS)? You could be one of the 43,000 taxpayers to receive an Accelerated Payment Notice (APN).

Accelerated Payment Notices, Accelerated Payment Notice, HMRC APN

What is an Accelerated Payment Notice (APN)?

HMRC are cracking down on tax avoidance. APNs can be issued to individuals and businesses that have used a tax avoidance scheme, and are in dispute with HMRC over whether the tax avoidance scheme works, and so whether they owe HMRC tax. These notices will ask for this tax to be paid upfront within 90 days!

What are we seeing with our clients who have used tax avoidance schemes?

Our clients, that have used tax avoidance schemes (for example, Sanzar Solutions Isle of Man Partnership; DOTAS reference: 90269264) are starting to receive warning letters from HMRC. These are two page letters with HMRC Factsheet CC/FS24 attached which gives further information.

What can you expect if you have received a warning letter from HMRC?

You can expect to receive the Accelerated Payment Notice within 1 to 8 weeks of the warning letter. If you receive an APN, you must make payment within 90 days. If you don't pay you could get penalties of up to 15% of the tax due.

How can I avoid penalties?

It may be possible to avoid these penalties by acting quickly, which includes making representations (if applicable) and arranging a payment scheme.

What happens if I ignore the APN?

If you ignore an enquiry; discovery assessment; Follower Notice; APN; or do not find out about the Settlement Opportunity before 30 June 2015, you could risk getting a bad outcome to your case, which may include substantial penalties.

Do not bury your head in the sand! Educate yourself! A good start is checking out our new video on Tax Avoidance and Accelerated Payment Notices to understand your situation!