A judicial review decision allowing HMRC to use controversial new powers to demand that individuals pay tax under dispute upfront could lead to significant hardship for many taxpayers, according to City law firm RPC.

RPC says that HMRC’s use of Accelerated Payment Notices – which were introduced in July 2014 – are likely to have a devastating financial impact on many taxpayers, especially those already engaged in a dispute with HMRC.

Adam Craggs, partner and head of RPC’s tax disputes team, explained: “Many taxpayers will be disappointed that the High Court has ruled i...