UK Contract Partners

UK Contract Partners Weighs in on High Court's Accelerated Payment Notice Ruling

Momentous decision is already impacting contractors across the country, even while appeal seems likely, UK Contract Partners reports

 

London, UK -- (SBWIRE) -- 09/25/2015 -- UK Contract Partners published at the company's website a new analysis of a recent High Court decision upholding the legality of HMRC's Accelerated Payment Notice, or APN, tactic. When contractors in the United Kingdom take part in tax avoidance schemes HMRC proposes to challenge, a provision of the Finance Act 2014 allows HMRC to demand tax payment within 90 days and before the legality of the arrangement has been determined.

In upholding the APN measure on all counts, the decision frees HMRC to pursue upfront payment from more contractors who use tax avoidance measures. The new UK Contract Partners report details the implications of this important decision for the company's customers and other contractors in the United Kingdom.

"Widely debated before last year's Finance Act enabled it, the Accelerated Payment Notice has turned out to be a source of real difficulties for many contractors in the United Kingdom," UK Contract Partners founder David Spowart said, "Our new report looks at what the High Court's recent ruling implies for our clients and others who make a living through contracting. While an appeal is underway, HMRC is feeling vindicated and already pursuing many more contractors."

With a wide range of ways to keep their tax bills down, some plainly legitimate and others less so, contractors in the United Kingdom frequently come onto the radar of Her Majesty's Revenue & Customs service. Formerly, the HMRC had to make determinations as to the legality of particular tax avoidance strategies before it could force tax payments from those who used them.

That changed with the Finance Act 2014, where a new tool called the Accelerated Payment Notice was introduced. Now upheld by the High Court's recent decision, the APN gives HMRC the power to insist on tax payments even before it has found that a scheme is illegitimate and without the possibility of appeal by the affected taxpayer.

The new UK Contract Partners report looks into the implications of this significant development, detailing what contractors in the United Kingdom can expect as a result. As one of the UK' s top partners for contractors of all kinds, UK Contract Partners regularly analyzes the evolving state of the country's contracting environment, as with its newly published report on the High Court decision.

UK Contract Partners makes it simple and cost-effective for contractors to avoid ir35 and other common pitfalls of the business, providing full-service assistance with everything from setting up and maintaining the umbrella companies london contractors so often benefit from to helping contractors obtain mortgages. The company's new report on the High Court APN decision can be found at its website, where visitors can also read more about the full range of its services.

About UK Contract Partners
Working for the nation's contractors, UK Contract Partners provides valuable, effective assistance with setting up and administering tax-advantaged, fully legal umbrella and limited company arrangements that can cut bills 15% to 30% compared to using PAYE.