The NI Tax Committee is in regular contact with the High Net Worth Unit (HNWU) of HMRC. This is a specialist division which deals with the tax affairs of the UK’s wealthiest individuals under its customer relationship model. A catch up call was recently held with the head of the East Kilbride unit which deals with most HNWU NI taxpayers. Matters discussed are outlined.

Recent developments in the unit

In the wake of Summer Budget 2015, additional resource has been allocated to the HNWU to bring the £10–£20 million high net worth population within the HNWU’s remit.

Recently the HNWU started the process of notifying those £10–£20 million HNWU taxpayers and it is expected that this will continue until at least quarter 3 of 2016/17.

The existing HNWU customer relationship model (“CRM”) will also be used for this population. HMRC are keen for any feedback/insights from the £10–£20million population when these taxpayers have all been moved into the HNWU and have had experience of the CRM model.

The HNWU now falls under the auspices of a division in HMRC known as Mid-Sized Businesses and Wealthy Clients which forms part of the Counter-Avoidance and Enforcement Directorate. This restructure reflects HMRC’s desire to approach taxpayers very much from a holistic perspective dealing with all tax heads as they relate to a taxpayer.

Accelerated payment notices

Accelerated payment notices (APNs) continue to be issued in large volumes. The schedule remains driven by HMRC’s Counter-Avoidance and Enforcement Directorate. HMRC remain conscious that whilst many taxpayers are asset rich, cash flow can be strained.

Agents/HNWU taxpayers are encouraged in such cases to contact their HNWU customer relationship manager early to discuss if an acceptable payment plan can be reached.

Some hints and tips for dealing with APNs were covered in Chartered Accountants Tax News last year; these are still relevant.