Options for Dealing With Accelerated Payment Notices

Thu 29 Sep 2016

It is common knowledge that HM Revenue & Customs (HMRC) now has a track record of successfully challenging tax avoidance schemes that clients may have invested in. Further, with the change in law in 2014 resulting in HMRC issuing thousands of Accelerated Payment Notices (APNs) or Partner Payment Notices (PPNs), many clients are now faced with significant tax liabilities that will sadly create significant solvency risks for them.

In the last five years, Mazars has successfully represented many clients in response to investigations by HMRC into tax avoidance schemes and latterly checking and making representations on receipt of APNs or PPNs. We have also successfully negotiated extended time to pay plans with HMRC on receipt of APNs and PPNs.

Clients facing the risk of potential insolvency have found our approach of bringing together the expertise of our tax and insolvency specialists to be invaluable in helping them understand all their options, rather than a single option typically provided by other advisors and “ambulance chasers”.

Mazars has also recently been instructed by HMRC as Liquidator of a company that invested in several tax avoidance schemes. HMRC removed the incumbent liquidator and is looking to aggressively pursue the Directors of the company in their personal capacities for significant tax liabilities it believes the company owes. This and our other experience enables us to have a detailed understanding of HMRC’s current thinking and what solutions may be available to your clients.

We have also been assisting accountant and legal contacts, delivering solutions for their clients who have received APNs. By working closely with HMRC, we are able to clarify the potential liability and seek to agree a repayment plan over a manageable period. Some of these situations have involved formal insolvency procedures, however we have also been able to agree proposals whereby the client has been able to avoid insolvency altogether.

Please do not hesitate to get in touch with either our Restructuring Services team or our Tax Investigations team if you or your client have an APN or PPN issue which needs addressing.