HMRC have just issued some guidance for taxpayers who receive a follower notice or accelerated payment notice.
Follower notice
- A follower notice might be issued if you use a tax avoidance scheme with the same or similar arrangements to one that HMRC has successfully challenged in court.
- The notice asks you to settle your tax affairs.
- Failure to do so may result in a penalty.
- Can be issued in addition to an accelerated payment notice.
Accelerated payment notice (APN)
- An Accelerated payment notice (APN) might be issued if there is an enquiry, dispute or appeal relating to your tax affairs, and you have
- Received a follower notice.
- Used a Disclosure of Tax Avoidance Schemes arrangement (DOTAS).
- Received a General Anti-Abuse Rule (GAAR) counteraction notice.
- The APN asks you to pay the amount of tax that is in dispute.
- HMRC then hold the money until the matter is resolved.
- Failure to pay may result in a penalty.
- If you are a member of a partnership you’ll receive a partner payment notice (PPN) instead of an APN.
What to do if you receive a notice
- The notice will tell you what you need to do.
- It will also tell you
- Why it has been sent.
- What to do if you disagree.
- What the relevant deadlines are.
- What penalties might result if you don’t pay.
- If HMRC do charge a penalty you will receive a notice of penalty assessment.
- You can appeal against any penalties you receive, see How to appeal a tax penalty.
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