Accelerated payment notices extend to PAYE tax

In 2011-12 the taxpayer took part in arrangements which were notifiable under the disclosure of tax avoidance schemes rules. It paid two directors in return for those directors incurring obligations to subscribe for its partly paid shares. In February 2016 HMRC issued determinations under reg 80 of the Income Tax (PAYE) Regulations SI 2003/2682 on the basis that the taxpayer owed tax on the payments to the directors. The taxpayer appealed and HMRC agreed to postpone the tax due.

HMRC later issued accelerated payment notices (FA 2014 s 219): one for the PAYE income tax and the other for the primary and secondary class 1 National Insurance. These in effect reversed the postponement.

In September the taxpayer objected to the notices. It began judicial review proceedings against HMRC’s decision to issue the APNs. It did not pay the tax shown on the notices so HMRC...