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In Sheiling Properties Ltd v HMRC [2021] EWCA Civ 1425, the Court of Appeal agreed that an Accelerated Payment Notice (APN) could be issued to an employing company for PAYE liabilities determined under Regulation 80. The amounts determined were ‘disputed tax’ under the APN rules.

Sheiling Properties Ltd had entered into a marketed avoidance scheme with two directors which was notified under the Disclosure of Tax Avoidance Scheme (DOTAS) rules.

The Court of Appeal agreed with the lower courts finding that the term ‘disputed tax’ in the APN legislation can include amounts stated in a regulation 80 determination.

The UT also had to consider whether the company had a Reasonable excuse for non-payment of the penalties on the basis that it objectively believed that the APN’s were procedurally invalid. Although it was found, on the specific facts, that it did not, the UT did determine that such a belief could be a reasonable excuse in respect of an APN in some circumstances. This point was not raised again at the Court of Appeal.

Useful guides on this topic

Accelerated Payments & Follower notices 
What are Accelerated Payments and Follower notices? What action is required? What are the penalties for non-compliance? Is there a right to appeal?

DOTAS: Disclosure of Tax Avoidance Schemes
What are the on Disclosure of tax avoidance schemes (DOTAS) rules? When should you disclose your use of a tax avoidance scheme? What are the consequences of non-disclosure? How are penalties calculated?

How to appeal a tax penalty (subscriber version)
What are the steps in making an appeal? What should your appeal cover? What does recent case law say on this topic?

Recovery of PAYE: Regulation 80 and 72 assessments for PAYE
When can HMRC assess an employer or an employee for unpaid Pay-As-You-Earn (PAYE) and National Insurance Contributions (NICs)? What is a regulation 80 determination? What is a regulation 72 determination? Who is assessed and what are the conditions?

External link

Court of Appeal: Sheiling Properties Ltd v HMRC [2021] EWCA Civ 1425 

Upper Tribunal: Sheiling Properties Ltd v HMRC [2020] UKUT 0175 


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