Appealing a tax decision

What this page covers

You may find this page helpful when you disagree with a decision HMRC have made.

We cover direct tax only, by which we mean things like income tax, capital gains tax and National Insurance contributions (also known as NIC). The definition of direct tax also includes other things that you might not expect, like student loan repayments. If you disagree with an HMRC decision about indirect tax, for example VAT, the rules are very similar. You can find basic information on what to do if you disagree with a tax decision on GOV.UK.

Another option that may be available to you when you disagree with a decision HMRC have made is Alternative Dispute Resolution. This can be used alongside the appeal process.

This page does not cover the following:

• HMRC are asking you for information you know you ought to give them or HMRC have discovered something you had not told them. You will have to sort that out with HMRC. Please see our information on enquiries.
• National Insurance credits (as opposed to liability or eligibility to pay National Insurance contributions). These are handled differently. For example, in order to appeal a National Insurance credits decision you should use form CA82. For more information, please contact HMRC’s National Insurance helpline.
• If your dispute is about tax credits, please go to our benefits section for more information.
• HMRC are demanding money that you owe, but you cannot afford to pay.

Appealing to HMRC

If you disagree with an HMRC decision and you have a right of appeal (see below under the heading When you can appeal an HMRC decision), you can appeal in writing to HMRC. You must normally make an appeal within 30 days of HMRC’s notice of their decision.

HMRC will consider your appeal. They will either agree with you and amend their decision, or confirm their original decision. They will confirm their position in writing. You will have 30 days from the date of that letter to appeal again, if you still do not agree with HMRC.

If you cannot agree your position with HMRC, HMRC may offer you a review (see below under the heading Internal reviews). You can request a review at any time. A review is an internal process, carried out by another HMRC officer who was not previously involved in your case.

If you still cannot agree your position with HMRC after a review, or do not want a review, you can appeal to the First-tier Tribunal (Tax Chamber). You can read more about appealing to the Tribunal in our separate guidance.

When you can appeal an HMRC decision

You can make an appeal only if you have a formal right to appeal against an HMRC decision. Rights of appeal are set out in law, and not every HMRC decision can be appealed against. You may have a right of appeal where HMRC, for example:

• are looking into your tax affairs and demanding excessive amounts of information or taking too long to bring their enquiries to an end,
• have altered your self assessment after an enquiry because they think you got it wrong,
• have made an assessment of tax on you or are disallowing a claim to a relief,
• have refused you a Construction Industry Scheme (CIS) sub-contractor's certificate,
• have issued a coding notice which you think is wrong, or
• are demanding a penalty or surcharge which you think is unfair or incorrect.

When HMRC write to you with a decision, they should also tell you whether you have a right of appeal. If you do not know whether you have a right of appeal, ask HMRC in writing (or, if you contact them to ask this by telephone, ask them to confirm their answer in writing).

Note that you cannot make an appeal (whether to HMRC or to the Tribunal) about the behaviour of HMRC staff. If you are unhappy about the way in which HMRC have dealt with you, you will need to make a complaint to HMRC as set out below.

If you do not have a formal right of appeal (for example, if HMRC refuse to apply one of their extra-statutory concessions) but disagree with an HMRC decision or the way they have handled your case, there are other options:

Complaints

See our guidance on how to make a complaint to HMRC, and then to an independent body if HMRC do not satisfactorily resolve the matter.

Judicial review

The courts can review the lawfulness of decisions or actions by a public body through the judicial review process. This can be an expensive procedure and expert legal representation is needed. There are strict time limits for commencing judicial review procedures. There is a basic guide to the judicial review procedure on the Public Law Project website.

Time limit for an appeal

You usually have 30 days to make an appeal to HMRC. This is 30 days from the date printed on HMRC’s decision notice, and not 30 days from the date you receive it.

HMRC’s decision notice may be in the form of a letter, but it could also be an assessment, penalty notice or other document.

Your appeal must reach HMRC within the 30 day time limit, so you need to post your appeal letter or form to HMRC in good time.

We recommend getting proof of postage (you can ask for this from the Post Office) and consider using a signed for or timed delivery service (such as next-day delivery) if you are close to the time limit.

If you miss the appeal deadline

HMRC can agree to consider a late appeal and will generally do so if you have a good reason for not meeting the deadline, and are not significantly late.

Let’s say for example that HMRC send you a penalty notice dated 1 March, but you do not receive it until 16 March. Your appeal should normally reach HMRC by 31 March (30 days from the date on the penalty notice). You might, however, argue that you did not have much time to sort out your appeal and get it back to HMRC by that date as a result of the delay in receiving the penalty notice.

If HMRC do not agree to consider a late appeal, you can apply to the Tribunal for permission to make a late appeal to HMRC.

How to make an appeal

If you wish to appeal a decision, you must send a notice of appeal to HMRC.

As described above, you must usually do this so that it reaches HMRC within 30 days of the date shown on their decision notice.

Your appeal must be in writing. You can either use an appeal form, or you can write your own letter of appeal. An appeal form may have been sent to you with the HMRC decision notice.

Send your appeal to the HMRC address shown on the appeal form or the decision notice you have received.

You must provide all of the following information with your appeal:

• your name and/or the name of your business
• your tax reference number, which is shown on the HMRC decision notice
• what decision or assessment you are appealing against
• why you disagree with HMRC's decision (your ‘grounds for appeal’)
• what you think the outcome of the case should be – for example, if an amount of tax is disputed, say what you think the correct figures should be and how you have worked them out

If you are not sure why you disagree or cannot work out the correct figures that should not stop you putting in an appeal. Just try to explain as best you can – for example, if you think you have a reasonable excuse for failing to get your tax return submitted on time, give as much detail as you can about what happened, when and why.

Paying tax if you have made an appeal

Making an appeal does not mean that you can simply not pay the tax in dispute.

For income tax, capital gains tax and corporation tax, you do not have to have paid the amount which HMRC says that you owe before appealing to HMRC or to the Tribunal, but the tax remains due and HMRC can start or continue with debt collection procedures.

You can apply to HMRC asking them to agree to a postponement of the disputed tax. This will suspend any debt collection procedures during the appeal.

You should apply by including a request for postponement when you make your appeal to HMRC. If HMRC refuse your postponement request, you can appeal to the Tribunal and ask for them to decide.

If you lose your appeal, you will have to pay interest on any postponed or otherwise late-paid tax in addition to the tax itself.

If you pay all the tax due on time, but then win your appeal, you may receive some extra interest as well as the repayment of the tax you have overpaid.

After you appeal to HMRC

HMRC will consider your appeal and let you know if they agree with you. Sometimes they will want to discuss your case with you – for example, they might want you to provide more information to back up your appeal.

HMRC may agree with your appeal and amend their decision.

If HMRC do not agree with your appeal and you are not satisfied with their reasons, you might have the following further options to consider:

• Request an HMRC internal review (also called a statutory review). 
• Appeal to the  tax Tribunal.
• Apply for alternative dispute resolution (ADR).

Getting help

The tax charity TaxAid specialises in giving free tax advice to people on low incomes, who cannot afford to pay a professional adviser.

Please be aware that TaxAid might not be able to support your case right through the appeal process and they may not be able to help you if you do not meet their criteria as a low-income taxpayer.

You could also ask for advice from your local Citizens Advice.