HM Revenue & Customs has reaffirmed its commitment to using accelerated payment notices to combat tax avoidance schemes as it releases updated guidance on how it intends to use the penalties.
Accelerated penalty notices order individuals to pay disputed tax amounts upfront before HMRC issues court challenges over contested tax avoidance schemes.
HMRC re-released its factsheet on compliance checks for tax avoidance schemes and accelerated payment notices today with updated guidance on how to make representations to HMRC when an individual might disagree with the penalty.
There is no formal right of appeal against an accelerated penalty notice, but individuals can provide evidence to HMRC that the amount of penalty is incorrect or has been collected outside of its normal powers.
The HMRC guidance sets out when it might send an accelerated payment notice, how it works out the payment amount, and what the penalties are.