We've become aware that HMRC has been contacting members of certain schemes who received an APN and subsequently joined a Judicial Review. The terms of the JR included a claim for hardship and in most instances we've seen, HMRC has agreed not to press for payment until the JR decision has been made. HMRC has always maintained that failure to pay the APN will result in penalties applying from the original due date but again they would not press for payment of these until the JR decision was made.
Now it seems that the original 90 day period has expired and HMRC has started contacting people for payment. This is via their usual method of telephone in the first instance and will include an invitation for a personal visit. This is not a special intimidatory tactic on collection but part of the process described in their Manuals.
There are however some communications circulating that accuse HMRC of breaching the terms of the JR injunction and resorting to intimidatory tactics. Whilst this may be true, there are some important points not being mentioned in the communications.
The agreement with HMRC in respect of those who are part of a JR, includes a "non collection" clause.
This means that despite the APN (and penalty) REMAINING DUE, it will not be subject to collection action.
A JR may gain you a few extra weeks before payment is due but at the cost of a penalty and legal fees.
A representation made within the rules creates a delay in payment AND a delay in the date a penalty can be applied.
The JR therefore DOES NOT remove the liability or the penalty.
By all means use the suggested methods of resisting collection action, for all I know HMRC may have breached their agreements, but be practical and assume that eventually payment is due (possibly with penalty) and if you need to discuss Time To Pay - start early.
Now it seems that the original 90 day period has expired and HMRC has started contacting people for payment. This is via their usual method of telephone in the first instance and will include an invitation for a personal visit. This is not a special intimidatory tactic on collection but part of the process described in their Manuals.
There are however some communications circulating that accuse HMRC of breaching the terms of the JR injunction and resorting to intimidatory tactics. Whilst this may be true, there are some important points not being mentioned in the communications.
The agreement with HMRC in respect of those who are part of a JR, includes a "non collection" clause.
This means that despite the APN (and penalty) REMAINING DUE, it will not be subject to collection action.
A JR may gain you a few extra weeks before payment is due but at the cost of a penalty and legal fees.
A representation made within the rules creates a delay in payment AND a delay in the date a penalty can be applied.
The JR therefore DOES NOT remove the liability or the penalty.
By all means use the suggested methods of resisting collection action, for all I know HMRC may have breached their agreements, but be practical and assume that eventually payment is due (possibly with penalty) and if you need to discuss Time To Pay - start early.
Comment