FOLLOWER NOTICES & ACCELERATED PAYMENT NOTICES (APNS)
HMRC’s use of Follower Notices and Accelerated Payment Notices (APNs) represents one of its most forceful approaches to tackling tax avoidance arrangements. These notices impose strict deadlines, financial pressure, and significant penalties if not handled correctly. As a specialist tax litigation solicitor with HMRC experience, I provide targeted, strategic advice to challenge these notices and protect your position.
FOLLOWER NOTICES
A Follower Notice is issued when HMRC believes your tax arrangements mirror a scheme already defeated in court. HMRC relies on what it considers a “final judicial ruling” to push taxpayers toward settlement. However, HMRC’s interpretation of similarity is frequently open to challenge.
For a Follower Notice to be valid, HMRC must meet four statutory conditions, including an open enquiry or appeal, a tax‑advantage arrangement, and a relevant judicial ruling. The notice must also be issued within strict time limits. If any condition is unmet or HMRC’s comparison is flawed, you can challenge the notice by submitting representations within 90 days.
Failure to take “corrective action” can result in penalties of 30%–50% of the disputed tax, making early specialist advice essential.
ACCELERATED PAYMENT NOTICES
APNs require taxpayers to pay the disputed tax upfront, removing any cash flow advantage associated with avoidance arrangements. HMRC can issue an APN where certain conditions apply, including the presence of a Follower Notice, DOTAS notified arrangements, or a GAAR counteraction notice.
You have 90 days to pay or make representations challenging the notice. Late payment triggers immediate penalties of 5%, with further penalties at 5 and 11 months.
HOW I HELP
I conduct a detailed review of the notice, assess whether HMRC has met the statutory conditions, and prepare robust representations challenging HMRC’s assumptions. Where appropriate, I negotiate directly with HMRC, seek time to pay arrangements, or escalate matters to ADR or the Tax Tribunal.