HMRC Recovers ВЈ1bn in Unpaid Tax

Accelerated Payment Notices (APNs) have assisted HMRC in recovering £1bn in unpaid tax.

Targeted at individuals who have used tax avoidance schemes, such as film partnership investment schemes, APNs require the individual to pay the amount of disputed tax up front, within 90 days of receiving the notice from HMRC.

APNs were announced as part of the Finance Act 2014 and have since been adopted by HMRC as a method to recover unpaid tax.

Since August 2014, HMRC has issued in excess of 24,000 Accelerated Payment Notices to individuals that it suspects has unpaid tax liabilities.

By the end of 2016, HMRC expects to have issued 64,000 APNs and targets that £5.5bn in unpaid tax will be recovered from individuals across the UK.

Individuals who receive an Accelerated Payment Notices and can prove that the tax demand is inaccurate have the right to a full appeal process at the First and Upper Tier Tax Tribunal. If the individual is successful, HMRC has to repay the amount of disputed tax.

According to figures, 824 individuals who have been in receipt of an APN have requested that the demand be reviewed. Of the 824, 100 have been successful in their appeals with HMRC having to repay around £28m.

HMRC believes that it is winning around 80% of the disputed cases.

Despite spread criticism of the initiative, Accelerated Payment Notices have been seen as a game changer in the government’s clampdown on tax avoidance and tax evasion in the UK.

With the government and HMRC continuing to ramp up their efforts in order to reduce the tax deficit it means that the options for those who may have unpaid tax are declining, particularly given that a number of voluntary disclosure facilities are set to close at the end of 2015.

If you suspect that you may fall onto HMRC’s radar, you can talk to our team of experienced tax disclosures professionals in complete confidence. We can discuss your circumstances and advise you of the most appropriate way forward.

To speak to our team call us on 0113 387 5670 or fill out an Enquiry Form and we will contact you straight away.