What can you do if you disagree with an HMRC decision?
HMRC will send you a decision letter that will tell you if you can appeal against a tax decision. What happens next depends on whether it is a direct or indirect tax decision.
For direct taxes such as Income Tax and Corporation Tax, you, or someone authorised to act on your behalf, can appeal against decisions about:
• tax assessments
• penalty assessments
• a request for information or to check your business records
You can write to HMRC to appeal the decision. The appeal should normally be made within 30 days of the notice being issued, but HMRC may consider late appeals.
You should tell HMRC why you disagree with the decision and provide further information for HMRC to consider.
What happens after an appeal to HMRC is made?
The case worker who made the decision will look at your case again and consider your appeal.
What happens if HMRC don’t change their decision?
If you cannot reach an agreement, HMRC will offer you a review. If you accept the review, someone at HMRC who was not involved in the original decision will carry out the review. You can provide further information and make further representations for the review officer to consider.
You can appeal to the tax tribunal:
• instead of accepting the review
• if you disagree with HMRC’s review decision
You can also consider Alternative Dispute Resolution (ADR).
What is Alternative Dispute Resolution (ADR)?
ADR is a mediation process. It involves a specially trained facilitator who will work with you and HMRC to explore ways of resolving the dispute.
ADR can be used before and after HMRC has issued a decision that can be appealed against, and at any stage of an enquiry.
How do I appeal VAT assessments?
For indirect tax decisions such as VAT, you cannot appeal to HMRC. In this instance HMRC will offer you a review. You can still appeal to the tax tribunal if you disagree with the outcome of the review.
What about late appeals?
If you miss the 30 day deadline to appeal to HMRC (direct tax), or accept the review offer (direct tax or indirect tax), you will need to have a reasonable excuse for missing the deadline.
Do I have to pay the tax or penalty if I appeal?
You may be able to delay the payment of any tax you owe or a penalty until your appeal has been resolved.
For direct taxes, you can make an application for postponement. For indirect taxes, you can make a hardship application.
