Tag Archives: Tax Grab

Have a tax credit and an APN in dispute? Beware this new tactic.


Have a tax credit and an APN in dispute? Be careful of this new tactic.

Dotas Scandal has received several reports of HMRC using now tax credits to cover outstanding APNs:

“Today i ran into a new situation. Every year i submit my tax return and go through the usual first payment on account, second payment on account. HMRC force you to pay your tax 100% over the amount you submit on your tax return and that normally sits as a tax credit.

I recently submitted my tax return, well actually way before i got letter, for 2015/16. I had a tax credit on my account, which offset against my current tax return would have meant I would not have had to pay any tax for 2015/16.

The letter today stated in simple terms that HMRC had swiped the tax credit and that under Finance Act 2008, they can do this. So basically: “tough luck, we’re not going to offset your tax credit against your latest tax return, we’re going to apply that tax credit to your APN and by the way you now still owe us £XXXXX”.

I am not even sure whether you can still pay current tax obligations. HMRC now seem to say whatever money they get they can apply in whichever way they want.”

It is no secret that HMRC are several £Bn short on their APN collection promises to Parliament, and getting desperate to extract monies by all means necessary.
As the APN well is drying up, expect more accounting tricks and unorthodox “collection” methods to be deployed. Plan accordingly.

Guest post: “APN – Apocalypse Perhaps Now?”

“(…) Now these people are being faced with a demand for tax, no appeal available, no postponement available, penalty for non payment, regardless of whether the amount is actually due and no shelter to be found in a legitimate legal process. I suggest that the “nurse test” will find this behavior UNACCEPTABLE, UNFAIR and OUTRAGEOUS.”

A comprehensive take on APNs and the unfairness they carry by a veteran tax professional

Read the full article here

MPs slam new tax grab

From City AM :

“Mark Field, Conservative MP for the City of London, said:  To take a retroactive approach to schemes that have already been approved seems wholly wrong.
“This could set a precedent that could be used much more aggressively in future. I’ve got no problem with rules saying that in the past we’ve been overly generous but to claw back money from schemes from many years ago creates a lot uncertainty and that’s not good for the UK economy.”
During a grilling by the Treasury select committee, Tory MP Steve Baker said that he was “horrified” by the plan, while John Thurso, a Liberal Democrat, suggested that the reform would breach the Magna Carta.

Thurso said that HMRC was trying to become “judge, jury and executioner” and that it wanted to remove legal protections simply because it was “slow and expensive” to follow legal process.”