Guidance

Ten things about accelerated payment notices

Updated 6 December 2022

Introduction

An accelerated payment notice is a requirement to pay an amount on account of tax or National Insurance Contributions. HM Revenue and Customs issues accelerated payment notices to taxpayers involved in avoidance schemes disclosed under the Disclosure of Tax Avoidance Schemes rules.

They can also be issued to taxpayers who have received either a Follower Notice, or a Counteraction Notice issued under the General Anti Abuse Rule, in relation to the scheme. The effect of the notice is to ensure that disputed tax or National Insurance Contributions rests with the Exchequer in an avoidance case, so removing the cash flow advantage enjoyed by users of tax avoidance schemes and the benefit they currently have over most taxpayers who pay their tax and National Insurance Contributions up front.

We will send out a letter some weeks in advance of the accelerated payment notice being issued, to let you know it is on its way, and to provide you with some information about accelerated payment notice.

Here are ten things you need to know if you have received an accelerated payment notice:

1. You must pay within 90 days

You have 90 days to pay the amount shown on the accelerated payment notice, unless you make representations, in which case the period may be longer. The payment does not have to be made in one go as long as it is all paid by the due date.

2. Failing to pay

Failure to pay an accelerated payment notice by the due date could lead to late payment penalties or surcharges becoming due and potential enforcement action being taken to recover the tax or National Insurance Contributions. To avoid this, pay the accelerated payment notice promptly.

3. Problems paying

If you think you will have problems paying the accelerated payment notice you should contact the HM Revenue and Customs telephone number shown on the notice, or the earlier letter which tells you we are going to send out an accelerated payment notice. Do this as soon as possible. We will talk to you about different payment options.

4. You may not get all your accelerated payment notice at once

Accelerated payment notice are being issued on a scheme-by-scheme basis and so, if you are in several schemes, you may not get all the accelerated payment notice that HM Revenue and Customs plans to issue at the same time.

5. You can receive more than one accelerated payment notice

Accelerated payment notices are sent out for each year of the avoidance scheme you are in and for each type of tax involved. For example, if you have used an employment scheme for two years and that scheme gives both a tax and national insurance advantage you may receive up to four accelerated payment notice.

6. Paying the accelerated payment notice is not settling your tax affairs

The accelerated payment notice will only cover the tax or National Insurance Contributions advantage relating to the specific avoidance scheme covered by the accelerated payment notice. The amount shown may not be the final liability agreed, which may be larger or smaller than the amount of the accelerated payment notice. It will not include any interest, penalties or other tax that may be due in the year. Therefore, when the enquiry or appeal is finalised, there may be additional amounts to pay.

7. Appeal rights

You have a right to make representations against the accelerated payment notice. You also have a right to appeal against the underlying tax or National Insurance Contributions that are in dispute.

8. You can object to an accelerated payment notice under specific circumstances

If you feel the amount quoted is incorrect or the conditions have not been met, you may make a representation which HM Revenue and Customs will consider. Representations should be made in writing to the address shown on the notice, within the 90 days before payment becomes due — if you send this elsewhere it might not be processed in time. If you do make a representation, HM Revenue and Customs will write to you setting out the results of their review. The response to your representation will tell you what you need to do next.

9. The amount due on an accelerated payment notice may be different to a settlement opportunity calculation

If you receive an accelerated payment notice at the same time as a settlement opportunity is in place, the value of the accelerated payment notice will not necessarily be calculated on the same terms offered in the settlement opportunity. Settlement opportunity calculations may also include interest and penalties. The accelerated payment notice may therefore not be for the same amount as the figure requested to settle the matter in full with HM Revenue and Customs.

10. You can still settle your affairs after you’ve received an accelerated payment notice

If you want to settle your tax affairs and you’ve received an accelerated payment notice, you should contact us as soon as possible. You must still pay the accelerated payment notice by the due date to avoid late payment penalties, but any payment received will be treated as a payment on account of the final liability and will stop the interest accruing on the underlying debt from the date it was received.