Starting a new business? Get 40% off our accountancy services for 3 months! 😀

x

There may be times when HMRC makes a decision you don’t agree with; perhaps an assessment has been issued and you don’t agree the amount of tax charged, or HMRC may be asking for payment of a security. If you disagree with a decision made by HMRC, you are able to challenge it. There are many rules that apply to appealing against a decision and the process is different for direct taxes and indirect taxes.

What are indirect and direct taxes?

There are several types of direct taxes, but the most common are Income Tax, Stamp Duty Land Tax, Inheritance Tax,HMRC Advice Capital Gains Tax and Corporation Tax. Some of the more commonly seen indirect taxes are VAT, Hydrocarbon Oils Duty, Alcoholic Liquor Duties, Customs Duty and Tobacco Products Duty.

The appeal process

If a decision has been made relating to direct taxation, including self-assessment, or a penalty issued in association with a direct tax, you can appeal against it. The direct tax appeal process will also apply if you receive a notice to produce documents or information, even if it refers to indirect taxation. If you fail to comply with the notice, you may be charged a penalty, which can also be appealed against using the direct tax procedures.

An appeal has to be made within 30 days from the date of the decision, either by letter or using an appeal form. You must inform HMRC of the decision against which you are appealing and why you are challenging it. At this stage, you may be able to reach an agreement with HMRC and at this time you will be expected to pay any outstanding tax or provide the information required.
If you can’t reach an agreement, you can ask for an independent review. If matters are still not resolved you may take the case to a Tribunal. The process is similar for indirect taxes, although there is no informal review to come to an agreement; if you don’t agree with a decision you must ask for a formal review within 30 days of the decision. If the original decision is upheld, you may take the case to Tribunal.

Appealing to Tribunal

In both cases, you can apply to a First-tier Tribunal. However, if you’ve requested a review by HMRC, you must wait for the outcome before appealing at Tribunal. If you have submitted an appeal to Tribunal, you can’t then ask for a formal review.

About The Author

Karl Bilby

We work very closely with our expert accountants to bring you the latest factually correct tax and accounting news. We also enjoy writing about small business news that we hope you find useful!

More posts by this author
guest
0 Comments
Inline Feedbacks
View all comments

Read more posts...

Get Ready for Small Business Saturday UK 2022

Small Business Saturday started in the US in 2010, on the first Saturday following Thanksgiving. It aims to encourage shoppers to consider…

Read More

Architects and Tax

Architecture is a highly diverse sector when it comes to tax. It’s partly down to the type of businesses that carry out…

Read More

June 2022 Client of the Month: Manea Kella

This month we spoke to Adrian Manea, architect and director at Manea Kella, a London based RIBA Chartered architecture and interior design…

Read More
Back to Blog...

Confirm Transactions

The number of monthly transactions you have entered based on your turnover seem high. A transaction is one bookkeeping entry such as a sale, purchase, payment or receipt. Are you sure this is correct?

Yes, submit my quote
No, let me change it

Please contact our sales team if you’re unsure

VAT Returns

It is unlikely you will need this service, unless you are voluntarily registered for VAT.

Are you sure this is correct?

Yes, the business is VAT registered
No, let me change it

Call us on 020 3355 4047 if you’re not sure.

Bookkeeping

You only need this service if you want us to complete the bookkeeping on your behalf.

Would you prefer to complete your own bookkeeping?

Yes
No

Call us on 020 3355 4047 if you’re not sure.