Tax avoidance schemes – accelerated payment notice 22 June 2017
The factsheet has been updated to provide further guidance on making representation if you disagree with an accelerated payment notice.
Background Legislation that affects those who have used an avoidance scheme was introduced on 17 July 2014. The scope of that legislation was extended to cover NICs with effect from 12 April 2015. The legislation means that those who have used an avoidance scheme may have to make a payment of the amount that relates to their use of the scheme, before the final amount has been agreed or determined. Such a payment is known as an accelerated payment.
HMRC may issue an accelerated payment notice to a person who has used an avoidance scheme if certain conditions are met.
Relevant contributions disputes For tax, accelerated payment notices can only be given where there is either an open enquiry or an open appeal. As there is no direct equivalent of an enquiry for NICs, paragraph 6 of Schedule 2 to the National Insurance Contributions Act 2015 introduces the concept of a ‘relevant contributions dispute’. Creating this concept allows HMRC to give an accelerated payment notice in circumstances where there’s a dispute about NICs, but before a NICs decision has been made which can be appealed against.
HMRC will send you an accelerated payment notice which will tell you how much you need to pay and when. It will also tell you what you can do if you disagree with it.
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Deliberate tax defaulters named and shamed 7 July 2017
The list of deliberate tax defaulters has been updated with the latest penalties charged to those companies found to be falling foul of tax law.
Topping the bill is metals trader ‘Matlock Recycling Limited’ who have been charged £2,227,887 in penalties for deliberating defaulting on over £3.5 million in tax payments over a period of 17 months between 2013 and 2014.
See the current list of deliberate tax defaulters on GOV.UK.
Background HMRC will publish details of those people who have received penalties either for: deliberate errors in their tax returns deliberately failing to comply with their tax obligations
HMRC may publish information about a deliberate tax defaulter where: HMRC have carried out an investigation and the person has been charged one or more penalties for deliberate defaults those penalties involve tax of more than £25,000
However, their information won’t be published if the person earns the maximum reduction of the penalties by fully disclosing details of the defaults.
HMRC will publish enough information to identify the: deliberate tax defaulter
penalties imposed for their deliberate defaults amount of tax on which those penalties are based
HMRC will only publish this information once these penalties are final.
The law requires that any information about the person is not published for more than 12 months from the date it is first published, and the lists of deliberate tax defaulters won’t be captured for the National Archives.
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