Non-payment of accelerated payment notices

The taxpayer appealed against penalties imposed for the non-payment of accelerated payment notices (APNs) relating to an avoidance scheme called ‘contractor solution’. He was also challenging the notices by judicial review.

He said condition A in FA 2014 s 219 was not satisfied because he had not received a notice of enquiry so it was invalid. He claimed reasonable excuse for not paying on the ground of this invalidity.

The First-tier Tribunal referred to several cases including Nijjar (TC5667)  Beadle (TC5993) and Goldenstate (TC6012). These confirmed the scope of a challenge to the validity of an APN in a penalty appeal was limited to the requirements in FA 2014 s 220(2). In the judge’s opinion the notice did satisfy that provision so it was valid.

The tribunal said a reasonable excuse argument based on a belief that an APN was invalid would be inconsistent with the statutory scheme the...