Milsted Langdon is warning businesses not to ignore accelerated payment notices (APNs) from HM Revenue & Customs (HMRC) after the department revealed that it raised more than £2 billion from the scheme in 2015.
APNs were introduced in 2014 to recover disputed tax and HMRC can issue notices to demand tax that it believes it is owed.
Taxpayers who receive an APN have 90 days to pay HMRC the outstanding tax, but can only receive the amount back if they can prove in a tribunal that the disputed amount is not due.
Figures from 2014 and 2015 show that HMRC has an 80 per cent success rate when APN cases go to court.
Simon Denton, Partner at Milsted Langdon, said: “Ignoring an APN and hoping it will go away is simply not an option. Failing to pay within the 90 days will only lead to more significant penalties being issued on top of the tax owed.
“While HMRC does have a high success rate, in around 20 per cent of cases people have been able to prove that the amount of tax due is either less or doesn’t exist at all and they have had their money refunded.”
Simon added that careful tax planning could help to eliminate the chance of ever receiving an APN and encouraged businesses and individuals to seek professional help if they were unsure about their own financial affairs. He added that Milsted Langdon can also liaise with HMRC to agree time-to-pay arrangements, which is another reason not to ignore the APN.
If you have been served with an APN payment notice and are concerned that you may not have the money that is being demanded, fear you may have to declare yourself bankrupt, re-structure your businesses or go insolvent, speak to our highly-skilled team or contact us.