In Stephen Ray v HMRC [2024] TC09340, the First Tier Tribunal (FTT) found that being party to a judicial review was no excuse for late payment of Accelerated Payment Notices (APN) and penalties by their due date.
HMRC had opened enquiries into Stephen Ray’s 2011 Self Assessment return noting his participation in two separate registered Tax avoidance schemes. An Accelerated Payment Notice was then issued.
Subsequently, HMRC opened Enquiries into three further tax returns.
- Mr Ray entered a group judicial review which challenged HMRC’s decision to issue the APNs.
- HMRC issued a further seven APNs to Mr Ray, none of which were paid.
- HMRC issued late payment penalties which were appealed. HMRC granted a postponement of payment for these.
- Mr Ray settled his outstanding tax liabilities in September 2020, excluding the APN penalties.
- The judicial reviews were discontinued and HMRC began enforcement of the penalties.
The tribunal found:
- The APNs were final as no representations had been made by Mr Ray.
- Despite Mr Ray settling his tax affairs, HMRC were not required to withdraw the APNs and associated penalties.
- Like many Similar cases before this, the participation of judicial review does not constitute a Reasonable excuse for delaying payment of the APN.
The appeal was dismissed.
Useful guides on this topic
Accelerated payment and follower notices
What are Accelerated Payments and Follower notices? What action is required? What are the penalties for non-compliance? Is there a right to appeal?
Dotas: Disclosure of tax avoidance schemes
What are the Disclosure of Tax Avoidance Schemes (DOTAS) rules? When should you disclose your use of a tax avoidance scheme? What are the consequences of non-disclosure? How are penalties calculated?
Promoters of tax avoidance schemes (POTAS)
Who is a Promoter? What are the Promoters of Tax Avoidance Scheme rules? What does this mean for promoters, intermediaries and clients?
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