Disputed PAYE tax within APN provisions

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 PAYE regs on the basis that the taxpayer owed tax in respect of the payments to the directors. The taxpayer appealed and HMRC agreed to postpone the tax due.

Later that year in July HMRC issued accelerated payment notices: one for the PAYE income tax and the other for the primary and secondary class 1 National Insurance.

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 imposed penalties against which the taxpayer appealed.

The First-tier Tribunal dismissed...