Right to Appeal Tax Decisions
Written in plain language for general understanding. This is educational content, not legal advice. Based on UK Acts of Parliament, statutory instruments, and official guidance.
UK National Law
What is this right?
If you disagree with a tax decision by HMRC — an assessment, a penalty, or a refusal — you have the right to challenge it.
The appeals process has two stages:
- Internal review: Ask HMRC to have the decision looked at by a different officer. This is free and usually takes 45 days.
- Tribunal appeal: If you're still unhappy, appeal to the First-tier Tribunal (Tax Chamber). This is an independent body, not part of HMRC.
You must appeal within 30 days of the decision. You can ask for either an internal review or go straight to the tribunal.
HMRC also offers Alternative Dispute Resolution (ADR) — a trained mediator helps you and HMRC reach agreement without a tribunal hearing.
When does it apply?
- You've received a tax assessment you believe is wrong.
- HMRC has issued a penalty (for late filing, late payment, or inaccuracy) and you disagree.
- HMRC has refused a claim — for a tax refund, relief, or allowance.
- The 30-day deadline is important but the tribunal can accept late appeals if you have a "reasonable excuse."
What should you do?
- Act within 30 days — write to HMRC stating you disagree and whether you want an internal review or tribunal appeal.
- For smaller, simpler cases, the tribunal's paper procedure allows a decision based on written submissions alone — no hearing needed.
- At the First-tier Tribunal, there are usually no costs — even if you lose, you normally won't have to pay HMRC's costs.
- Consider ADR — it's free, voluntary, and can be quicker than a tribunal. Request it through HMRC's ADR team.
- If the First-tier Tribunal dismisses your appeal, you can appeal further to the Upper Tribunal (Tax and Chancery) on a point of law.
What should you NOT do?
- Don't miss the 30-day window — late appeals are harder to get accepted.
- Don't pay a penalty you disagree with without appealing first — paying doesn't waive your right to appeal, but appealing puts the payment on hold while the dispute is resolved.
- Don't attend a tribunal without preparation — organise your evidence, understand HMRC's argument, and consider getting professional representation.
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