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‘Knock knock’ it’s time to pay up says HMRC

‘Knock knock’ it’s time to pay up says HMRC

HM Revenue & Customs is to deliver thousands of advanced payments notices (APN) to investors in tax avoidance schemes, in the next few weeks.

It is thought that up to 2,500 notices will be issued by the end of 2014, HMRC has confirmed is plan to claim disputed revenue from over 40,000 users of the tax avoidance schemes, made up to 33,000 individuals, some of whom are well known celebrities and 10,000 businesses.

The figure HMRC is believing to raise could be as a high as £7bn in the next 18 months alone.

Under the newly passed accelerated payment rules, the taxman now has the power to make taxpayers pay their disputed tax in advance, instead of previously waiting for the outcome of a tax tribunal. Should the taxpayer under scrutiny win their case, their money will be reimbursed with interest.

Taxpayers issued with an advanced payment notice must pay within 90 days or risk receiving an immediate 5% penalty, followed by two further 5% penalties should they not pay.