A list of tax avoidance schemes with“accelerated payments”power has been published by HM Revenue and Customs (HMRC) and users may receive a notice to make upfront tax payment.
Taxpayers must disclose if they are using an avoidance scheme as per current rules and HMRC may challenge the schemes the taxpayers are using. The Finance bill which is waiting for Royal Assent will allow HMRC to ask for payment of disputed tax to be made upfront. Taxpayers will still enjoy making their tax case to tribunal or court and if they will the case, all money with interest will be returned in due course. Under the rules for disclosing a tax avoidance scheme (DOTAS), HMRC will provide a scheme reference number (SRN). The users of this scheme will receive a notice to make an accelerated payment and which will be started from next August.
