HMRC brings in record £1 billion from avoidance crackdown 15 September 2015
Accelerated Payments was introduced last year where disputed tax must be paid upfront by avoidance scheme users. So far £1 billion in tax payments has been received by HMRC due to this new regulation.
Accelerated Payments were introduced in Finance Act 2014 and National Insurance Contributions Act 2015 and they apply where avoidance schemes are subject to the Disclosure of Tax Avoidance Schemes rules or the General Anti-Abuse Rule, or where they are similar to a scheme that has already been defeated in the courts. An Accelerated Payment Notice is issued to the taxpayer to collect the outstanding tax and once received, they have 90 days to pay or make representations to HMRC if they consider the notice is incorrect. Taxpayers retain full appeal rights against the substantive tax liability and If the case is taken to litigation and the taxpayer ultimately wins, HMRC will repay the tax with interest.
When announcing the first £1 billion in tax payments, Financial Secretary to the Treasury David Gauke said:
“The Government will not tolerate tax avoidance and Accelerated Payments has been a real game changer. It is no longer possible for these individuals to avoid tax and sit on the money while their affairs are investigated. This first £1bn received in Accelerated Payments shows that we are turning the tables on those looking to avoid paying their fair share.”
Jennie Granger, Director General for Enforcement and Compliance, HMRC, said:
“Tax avoiders are running out of options. People now have to pay upfront and dispute later. We are winning around 80% of avoidance cases that people litigate. And many more are settling before litigation.”
More than 25,000 notices to pay disputed tax have been issued by HMRC since August 2014. By the end of 2016, HMRC expect to have completed issuing around 64,000 bringing forward £5.5 billion in payments for the Exchequer by March 2020.
HMRC’s ‘ Spotlights ’ features tax avoidance schemes which HMRC believes are live and being widely offered to help those using them to avoid tax.
HMRC invites you to check out your medical benefits on the new Personal Tax Account service 25 September 2015 Earlier this year we published a request from HMRC in which they asked for volunteers to test a new element of the Personal Tax Account (PTA) digital service called ‘Check your Income Tax estimate’. A service for individual employees rather than employers, HMRC were looking for volunteers to test the service for them. A number of CIPP members volunteered and HMRC were very grateful for their input. HMRC are now looking for volunteers to test a further element of the PTA covering medical benefits. Once again HMRC are looking for volunteers in an individual capacity rather than as an employer. Only those users who currently receive a medical benefit will be able to view this particular information, although other users will still be able to view the rest of their account. If you currently receive a medical benefit and would like to help, and have already tested the PTA following HMRC’s previous request you will not need to register all your details again and can go straight to the medical benefits area.
If you would like to help but haven’t accessed the PTA before you will need to go through a verification process first and will need the following to hand:
a valid passport and/or a photocard driving licence issued in the UK (excluding Northern Ireland) access to information about your bank account and/or credit cards, as you will need to be able to answer questions based on your financial accounts and history a mobile phone or tablet. When you have accessed your account to check your Medical Benefits, you can also easily check some other personal details on the record such as ensuring your address is correct and that HMRC has estimated your income accurately. Both can be updated if they are incorrect.
CIPP Policy News Journal
25/04/2016, Page 207 of 453
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