HMRC issues 10,000 accelerated payment notices

Approximately 10,000 accelerated payment notices (APNs) were served by HMRC to people using tax avoidance schemes, according to an annual report from the tax authority for the 2014/15 financial year.

As part of the current APN rules, HMRC can force taxpayers to pay any disputed tax up front, instead of waiting for a ruling from a tax tribunal.

However, if the taxpayer wins their case, HMRC then has to pay the money back to them along with any accrued interest.

In a recent statement, HMRC outlined its estimate that it would be issuing a total of 64,000 APNs to individuals and businesses that currently use tax avoidance schemes.

Initial estimates predicted that the authority would be able to claim £210m by March 2015, from APN payments, but the actual figure received was £596m.

After refunding £28m to those that won legal challenges, it still meant that HMRC made a net gain of £568m – more than double what it had originally projected.

HMRC has been under increasing pressure to penalise any individual or business suspected of tax avoidance.

It has also faced widespread criticism for the way in which it has handled enquiries, and in an attempt to meet higher standards it was announced last month that £45m would be used to help improve its level of customer service.

Figures in the annual report state that HMRC’s takings from tax rose by almost £12bn – to £517.7bn – in the 2014/15 tax year, which it has claimed is mostly due to economic growth combined with a continued commitment to tackling tax evasion and avoidance.