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.
David Macdonald, managing partner at The Martlet, said: “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.
Figures from 2014 and 2015 show that HMRC have an 80 per cent success rate when APN cases go to court.
“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.”
David 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.
If you would like to know more about The Martlet range of tax compliance and planning services, please contact us.