Businesses should not ignore accelerated payment notices (APNs) from HM Revenue & Customs (HMRC), independent chartered accountants WBV Ltd is warning.
WBV’s warning comes after HMRC revealed that it raised more than £2 billion from the scheme in 2015.
APNs were introduced in 2014 to recover disputed tax and HMRC can issue notices to demand tax that it believes it is owed.
Taxpayers who receive an APN have 90 days to pay HMRC the outstanding tax, but can only receive the amount back if they can prove in a tribunal that the disputed amount is not due.
Figures from 2014 and 2015 show that HMRC have an 80 per cent success rate when APN cases go to court.
David Rowe, director at Neath and Swansea based WBV, “Ignoring an APN and hoping it will go away is simply not an option. Failing to pay within the 90 days will only lead to more significant penalties being issued on top of the tax owed.
“While HMRC does have a high success rate, in around 20 per cent of cases people have been able to prove that the amount of tax due is either less or doesn’t exist at all and they have had their money refunded.”
Mr Rowe added that careful tax planning could help to eliminate the chance of ever receiving an APN and encouraged businesses and individuals to “seek professional help if they were unsure about their own financial affairs.”
NOTES TO EDITORS
For further information, please contact:
David Rowe
WBV Limited
Tel: 01639 635555
Email: davidrowe@wbv.ltd.uk
The Third Floor
Langdon House
Langdon Road
SA1 Swansea Waterfront
Swansea
SA1 8QY
Tel:01792 652108
Woodfield House
Castle Walk
Neath
SA11 3LN
Tel: 01639 635555
WBV Ltd is a member of the prestigious UK200 Group of independent practicing chartered accountants with offices throughout the UK and associates overseas.
