Late appeals to HMRC – here’s how we achieved success

By Grant Summers, Director

In our role as Tax Dispute specialists, we are often introduced to long running tax litigation cases where we identify that previously issued assessments are incorrect and should be reduced.

There is a procedure whereby clients can make late appeals against already determined assessments, but our recent experience has seen an increasing reluctance from HM Revenue & Customs (HMRC) to reopen years which they consider to be closed.

We recently advised clients in five late appeal cases.

In two of these, we managed to persuade HMRC to accept the late appeals during the Tax Tribunal process thus avoiding a hearing.

We then went on to achieve substantial tax savings for both clients.

In July 2025, we successfully secured permission from the Tax Tribunal to pursue a ‘late appeal’, following HMRC’s refusal to accept the client’s reasonable excuse (Abbey Healthcare (East Kilbride) Limited and Others v HMRC).

Background

At the time the assessments were issued to a number of companies, the client was unaware that they had grounds to appeal the tax charged.

However, whilst no formal appeal had been lodged, the client believed the matter remained open due to ongoing correspondence in respect of penalties among other things.

It was only upon our engagement that the existence of valid grounds for appeal were identified, and we advised that a late appeal could still be pursued.

HMRC resisted, and unfortunately correspondence would not change HMRC’s mind, so we pursued the matter to the First Tier Tribunal.

Our approach to late appeals

In this instance, HMRC had taken seven years to raise the assessments after identifying the relevant facts, whereas the client’s delay in appealing was only five months (if they were late at all).

In addition, the amount at stake from this decision would be significant for the client.

We carefully compiled the timeline of correspondence, which was crucial in establishing that our client reasonably believed that the matter was still ‘open’ not least since HMRC had appeared to agree to give additional time to appeal in relation to one of the companies.

Failing that, we argued that if there was a late appeal, the circumstances were such that it should be allowed.

In relation to the majority of appeals, the Judge determined that while the appeals were five months late, the circumstances were such that late appeals should be accepted.

In relation to one company, the judge determined firstly that based on the correspondence, an open-ended extension of time had been granted by HMRC, and therefore the appeals submitted were in time and should be accepted.

The judge went on further to consider whether, if that conclusion was wrong, a late appeal should be accepted.

The Judge considered that if the appeal was late, it should still nevertheless be accepted.

In cases involving late appeals, the Tribunal applies the principles established in case law.

The main approach the Tribunal used being via the Martland test, which involves three key steps:

• Assessing the length of the delay – Delays exceeding 60 days are generally considered more serious.
• Evaluating the reasons for the delay – The Tribunal examines the explanation provided.
• Considering all circumstances of the case – This includes weighing the merits of the reasons given and the potential prejudice to both the taxpayer and HMRC.

We also have two further cases in the Tax Tribunal process where clients have already been issued significant estimated assessments.

In both, the clients paid the tax but maintained that HMRC’s estimates were completely incorrect.

Having reviewed the position for both, we believe that they meet the Martland test and, when late appeals are admitted, tax refunds would be due.

How we can help with late appeals

In many instances the devil is in the details, as it was here.

Careful analysis of the correspondence, both in terms of its timing, the technical issues, and what was said by both HMRC and our client, was crucial in terms of getting the right outcome.

Our success with late appeals comes from our expertise as former HMRC inspectors in managing these cases and HMRC disputes more broadly.

We’ve combined deep technical tax knowledge with strategic insight to deliver outcomes that safeguard our clients’ interests.

If you or your business needs support with a late appeal or any HMRC enforcement action, get in touch to discuss how we can help protect your position.

You can get in touch with our friendly and experienced team on: 0203 675 8122 or email grant.summers@intaxltd.com.

inTAX is a specialist tax disputes firm. We deal with disclosures, investigations, and tax enquiries of all descriptions, including COP9, fraud investigations, VAT fraud, tax avoidance, let property disclosures and tribunal appeals. However, we don’t just deal with the serious end of tax investigations; we are also happy to handle smaller enquiries, disputes and problems that can be equally as worrying for our clients.