Accelerated Payment Notices

Opened the debate

MP Steven Baker highlighted the concerns over Accelerated Payment Notices (APNs) introduced by the Finance Act 2014. He expressed worries about their impact on taxpayers and the fairness of the system, citing examples from his constituency where APNs were applied retroactively to enterprise zone investments made in the 2006-07 tax year. Baker argued for greater oversight of APN processes, repayment to taxpayers when test cases are lost, a five-year limit on HMRC retaining APN moneys, and penalties for unreasonable levies by HMRC.

Government Response

Minister Helen Whately acknowledged the debate's focus on Accelerated Payment Notices (APNs), emphasising their role in tackling tax avoidance and ensuring fair collection of taxes for public services. She detailed the safeguards around APN issuance, including oversight boards and conditions that must be met before a notice is issued. Whately noted there is no right of appeal against an APN but stressed HMRC’s commitment to examining representations thoroughly and providing redress if disputes are settled in favour of taxpayers. The Minister highlighted that since their introduction in 2014, APNs have brought forward over £5.6 billion in revenue for public services. She reiterated the fairness and proportionality of APNs as upheld by courts and promised to explore more communication on tax risks with HMRC.