Judicial review applications against HMRC

KEY POINTS

• The accelerated payment notice regime corrects the cash flow disadvantage that used to arise to the exchequer.
• The notices have no right of appeal – they can be challenged only by judicial review.
• The courts are often critical of HMRC’s actions but find in its favour nonetheless.
• Pre-DOTAS schemes usually require a follower notice before an accelerated payment notice.

The number of judicial review applications made against HMRC has risen markedly in the past couple of years. Most have concerned HMRC using its new powers to issue notices to enforce payment before the taxpayer’s case has gone to a tribunal. Further the courts seem to be cutting HMRC a lot of slack.

The old way

HMRC has managed to get itself into a bit of a mess dealing with...