We wrote about the Government’s introduction of Accelerated Payment and Follower Notices in a previous article. At the time of writing this was a totally new concept, so where are we now?
Firstly to recap, the notices being issued are part of the Government’s on-going clamp down on aggressive tax avoidance. The notices require the taxpayer to pay the tax at dispute upfront, whilst HMRC further challenge the scheme. In the past the challenge and success would have to come before the tax is due.
So, what do you do if you receive a notice?
If you receive any payment notice in respect of a tax scheme seek tax advice immediately.
It is likely that the provider of the scheme will be putting together a fund to fight the legality
of the payment notice issued. You have the choice whether to participate or not.
The scheme provider will be seeking to prevent HMRC from enforcing the payment notice and charging interest and penalties for non-compliance by seeking judicial review. If successful the tax would become payable only when the tax planning scheme is successfully challenged by HMRC.
So far the first legal challenge against HMRC has successfully secured judicial review with HMRC not being able to enforce payment notices they issued until this process has concluded. We are aware of a second scheme provider who is seeking to obtain judicial review.
Whilst Revell Ward Ltd do not offer this type of tax planning schemes and so are not a scheme provider, we are advising a number of clients who entered into tax planning schemes with other providers, and assisting them with the process.
If you have or suspect you may receive a payment notice and would like to discuss your options, contact Lesley Sutton on 01484 550 037 or email firstname.lastname@example.org.