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Follower and Accelerated Payment Notices (APN)

Follower and Accelerated Payment Notices (APN)

Basic Facts


From the date The Finance Bill 2014 receives Royal Assent (within the next couple of weeks!!), any individual or company that has undertaken aggressive tax planning since August 2004 may receive a “Follower Notice and/or an Accelerated Payment Notice (APN)” requiring them to amend tax returns, and in some cases payback the tax saved via “tax advantageous” strategies.


Options available


There appears to be no right of appeal to an independent third party, and therefore options are extremely limited.


Options available are;

  • Seek a settlement with HMRC
  • Pay the tax back
  • Pay the tax and then continue with litigation until the tax planning is found to be legitimate. On this occasion HMRC will refund the tax paid with interest.


Reality


In some cases, APN’s could result in extreme financial pressure for the individual/company who has used a tax strategy and could lead to bankruptcy for the individual or liquidation of the company.

Although litigation is available to the tax payer, it is a costly action in itself and so is only worth considering if the APN is substantial.


What should we do?


HMRC are publishing a list of those schemes which it intends to issue APNs before the end of this month.


It is essential you take action now! Consult with your accountant so that you may plan for the payment of tax.


For more information you can refer here


Help at JS & Co


If you are affected and would like some advice from our team, please feel free to contact the office by calling 0121 706 8585 or emailing us at mark@jamesstanley.co.uk.


 

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Disclaimer


The information provided in all of our blogs reflects only a narrative of some elements to consider on the topic. The blogs do not contain considered legal or accounting advice and should not be relied upon as advice. Please see our website's terms and conditions for full details of our disclaimer. If you are interested in obtaining advice, please contact us and one of our accountants will be happy and able to advise you on your own particular circumstances.

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