It said it will be issuing as many as 10,000 charges and demands for late payments to businesses across the UK.

This will address about £2.1bn in missing tax payments.

Last year, the government announced plans to increase the power of the HMRC to use past cases of tax avoidance to resolve business tax disputes. See all the details here.

Simon Newsham, a Partner in the Tax team at Winckworth Sherwood said: “This is the most significant of the clampdowns on taxpayers that have engaged in tax avoidance schemes [we’ve seen].  

“Business owners will be naturally concerned when they receive these demands and it is entirely possible that they will not be able to afford to pay straightaway.”

The Follower Notice issued by the HMRC would give a business just 90 days to pay up or contact to the HMRC to resolve the dispute. After which, they will take legal action.

If you’re a business who is concerned about whether or not your approach to taxes is entirely legal, Newsham offers the following advice: pick up the phone, perhaps the HMRC are mistaken; collect all your tax mitigation emails, which will be essential in communications with the HMRC; ultimately, react fast. These notices can’t be appealed.

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