HM Revenue & Customs has issued 10,000 accelerated payment notices (APN) to suspected tax avoiders since August last year, and has plans to issue another 54,000 by April next year.
Taxpayers are expected to pay any disputed tax which the Revenue claims it is owed within 90 days of receiving the notice.
LDF has established the ‘funding line’ designed to help those taxpayers in the middle-earning bracket who cannot afford the upfront payment.
Alternative finance option
“A lot of taxpayers receiving APNs are going to struggle to make the payments that HMRC is demanding,” said LDF managing director Peter Alderson.
“In many cases, these are fairly ordinary, successful middle-class professionals and entrepreneurs, for whom finding a lump sum of tens or hundreds of thousands of pounds will be extremely difficult.”
After establishing what risks are involved with each individual case, the financial services company can offer taxpayers a loan to cover the immediate costs, giving them the opportunity to pay back the full payment over a longer period.
Alderson said: “These taxpayers need to be aware of all their options when it comes to meeting HMRC’s demands. There is alternative finance available to cover these costs, allowing taxpayers to regularise their tax positions with HMRC over a period that fits their finances.”
No right of appeal
Given that there is no right of appeal, some taxpayers have sought judicial reviews to challenge the legality of the notices.
The High Court threw out the first judicial review, brought by investors in Ingenious Media partnerships in July, clearing the way for HMRC to pursue £5.5bn in extra tax through APNs by 2020.
