Advance Payment Notices Are To Begin

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HMRC To Collect Tax Now and Argue It Later

Tax burden

HMRC are making it very clear that tax avoidance will not be tolerated. They now have the power to demand payment of any tax that has been avoided through a scheme or arrangement.

They will be targeting any arrangement which they believe has been entered into mainly to avoid tax. This relates to all taxes including corporation tax, income tax and capital gains tax.

How Does The APN Work?

There are three conditions which HMRC have to meet before being able to issue an Advance Payment Notice (APN). These are as follows:

  • They must have started an enquiry into the relevant tax return
  • There must have been a tax advantage from using the scheme or arrangement
  • They must have notified you that they believe the scheme or arrangement involves tax avoidance

    • Can We Avoid An APN?

    As long as HMRC have met the above three conditions then there is really no way to avoid paying the tax in advance of the enquiry reaching a conclusion.

    However, here at Striped Leopard, we are dedicated to ensuring that businesses do not pay a penny more than they have to in tax. So, if you think that an arrangement or scheme is going to be effective then don’t let this put you off. Just make sure that you build in to your cashflow the fact that you may not get the tax back for months or even years.

    If HMRC haven’t met the conditions above then you have 90 days to appeal the tax demand.

    Have you received an APN or do you think that you may be at risk of receiving one?

    Vikki

    Did You Know

    That Striped Leopard are dedicated to ensuring that you dont pay a penny more in tax than is legally required.
    Please contact us to find out how we can help you.