Accelerated Payment Notices (APNs) Recover ВЈ600m

Accelerated Payment Notices (APNs) issued to individuals suspected of tax evasion or tax avoidance have raised almost £600m according to figures released by HMRC.

Since APNs began to be issued by HMRC in August 2014, £596m has been recovered during the period up to March 2015.

APNs were introduced in order to target those HMRC suspected of having unpaid or undeclared tax. The APN is essentially a demand to repay the amount of tax HMRC suspects is owed in full within 90 days, or face additional penalties, and even criminal prosecution in extreme cases.

Accelerated Payment Notices received wide criticism due to perceived limitations, particularly in relation to the appeal process, and the concern that it could make many face immediate bankruptcy. Individuals are able to dispute the APN at a tax tribunal but will only receive reimbursement from HMRC if they are successful in their appeal.

Since August 2014 824 individuals have requested a review of their tax position at tribunal following receipt of an APN. However, so far, only 100 have been successful.

According to the figures from HMRC, 10,000 APNs were issued over the period since they were introduced. There are a further 64,000 expected to be issued.

HMRC also announcement earlier this year that it was to close a number of disclosure facilities early, such as the Liechtenstein Disclosure Facility (LDF), at the end of 2015 rather than in Spring 2016.

The announcement alongside HMRC’s intent to continue to issue Accelerated Payment Notices means that time is ticking away for many to make a voluntary disclosure of unpaid tax by taking advantage of the disclosure facilities available rather than running the risk of a full investigation by HMRC, which, in extreme circumstances, can lead to increased penalties and criminal prosecution.

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