APN demand from HMRC

**rcgeorge23** · 2 February 2017, 16:33

To be honest I think your options are pretty limited.

I know of some APNs that have been withdrawn on the grounds that there is no valid open enquiry (check your past correspondence with HMRC - can you find an a letter stating that they are opening an enquiry into your 2011 tax return? Was it raised within 1 year of your tax return being submitted?). If you can prove that there isn't a valid open enquiry, HMRC should withdraw the APN. If you have lost your paperwork, then you can request new copies from HMRC by submitting a subject access request (online form here: https://online.hmrc.gov.uk/shortforms/form/DPU_SAR). HMRC also sometimes lose their own paperwork, so if they are unable to produce evidence that they've opened an enquiry then perhaps this is also grounds for appeal.

If there is an open enquiry, and if Cascade won't let you join their judicial review then I think your best bet is to phone HMRC and try to agree a time to pay arrangement. They usually allow 12 months, or possibly a bit longer if you can provide proof of financial hardship.

If you don't pay then the penalties start racking up after 3 months.

I'd also suggest speaking to WTT and asking whether it would make sense to join Big Group (https://www.wttbiggroup.co.uk/) - their first settlement action is already in progress, so you're a bit late for that, but there may be other options later on down the line.

**webberg** · 2 February 2017, 16:41

Get professional advice.

Lots of people out there who can do that.

You cannot appeal an APN. You can make a representation and that may delay it by a few weeks. Cost between £250 and perhaps £500.

You can form/join a judicial review group which may gain you a few months delay with the outside chance of having it temporarily withdrawn. Cost between £30,000 and £100,000 so it depends how many in the group as to individual cost.

You can choose to pay it in instalments - up to 12 months is easy enough, beyond that more difficult.

You can choose to not pay it and deal with the efforts of DMB in collecting the money.

If the notice is wrong in some way, you might get is withdrawn and remade.

**ShouldLiveinSwitz** · 9 February 2017, 22:25

Hi I too was part of Hamilton/Cascade and got my APN yesterday.

After long discussions with Matt Hall at ww w.contractorupdates.com (cascade transferred the onus to them after Kingston Smith LLC stopped providing services between contractors and HMRC) and my own accountant, it does appear I'm going to have to make a payment to HMRC....BUT do check the amount they say that you are due to pay, HMRC haven't got a clue how to calculate it correctly as they assume that you were paid at a constant amount each month and just take the PAYE figure and multiply that by 0.2 to give hypothetical GROSS figure.

If you contracted hourly then this figure is totally wrong. In my case about 50% wrong in my favour. I've had to order old bank statements and once my accountant has seen them he will contest the amount and then they'll have to re-calculate the APN. This I will then call to arrange a payment schedule.

On another note, Matt Hall said that users of Hamilton Trust (2,500 of them roughly) were emailed about starting litigation against HMRC, the first round of which is due to start in the coming weeks. This closed for me and I guess you a year ago, it cost £250 each.

However, Matt pointed out that even if they do win the case the government are hoping to approve the Finance Bill for 2017 and in that bill it will permit HMRC to claw back any loan schemes that individuals used from 1999!!! And to be paid in 2019 - (about the right time to collect enough cash to pay the European Union exit!).

So Matt even said that they are effectively pushing the repayments further down the line, but in the end they'll lose

**ShouldLiveinSwitz** · 9 February 2017, 22:26

Originally posted by webberg View Post

Get professional advice.

Lots of people out there who can do that.

You cannot appeal an APN. You can make a representation and that may delay it by a few weeks. Cost between £250 and perhaps £500.

You can form/join a judicial review group which may gain you a few months delay with the outside chance of having it temporarily withdrawn. Cost between £30,000 and £100,000 so it depends how many in the group as to individual cost.

You can choose to pay it in instalments - up to 12 months is easy enough, beyond that more difficult.

You can choose to not pay it and deal with the efforts of DMB in collecting the money.

If the notice is wrong in some way, you might get is withdrawn and remade.

There isn't an option to join a judicial review group for the Hamilton Trust scheme - that ended in 2016 January....

**ShouldLiveinSwitz** · 9 February 2017, 22:28

Originally posted by whichwaytogo View Post

Hi,

Advice needed.

I was part of an offshore EBT scheme for one year (2011) under the Cascade/Hamilton providers. I've now received an APN for that tax year and given 90 days to pay it. The providers are no longer interested as they set up a litigation fund several years ago, and that wasn't on my radar at the time, so I missed out on joining.

I believe I can appeal the APN, which might get a 30 day delay, but any other ideas very welcome.

I missed out on joining the litigation simply because Hotmail filtered out the emails from [email protected]...

**webberg** · 10 February 2017, 10:54

Do not confuse a Judicial Review which is challenging the legal basis of the APN (and seeking postponement of the tax demanded until that decision is made), with making a representation on a personal basis which is the only way to delay the tax due if you have missed the judicial review boat.

Further, the Judicial Review into the APN is not a legal action aimed at establishing the ultimate liability. That needs a case through the Tribunal/Court system and there are a number of them going through this year.

To be part of those you need to be "joined". Some of these groups have closed to new members but it may be possible to "join" the action regardless.

As I said, get professional advice.

APN demand from HMRC