Appeals

Taxpayers in the United Kingdom have the legal right to challenge the tax assessments issued by HM Revenue and Customs (HMRC). The appeals procedure is intended to give taxpayers a way to challenge decisions made by HMRC if they think the decision was made in error or was not just. The appeals process can vary depending on the type of tax and the circumstances of the case. However, HMRC generally follows a three-stage process for resolving tax disputes:

Internal Review

The first stage of the appeals process is an internal review by HMRC. Taxpayers can request an internal review of an HMRC decision, and HMRC will consider the case again, considering any additional evidence provided. If HMRC upholds its original decision, the taxpayer can proceed to the next stage.

Tax Tribunal

The second stage of the appeals process involves taking the case to a tax tribunal. Tax tribunals are independent bodies with the power to hear appeals against decisions made by HMRC. There are two tax tribunals in the UK: the First-tier Tribunal and the Upper Tribunal. Taxpayers can choose which tribunal to take their case to, depending on the complexity and value of the case.

Courts

The final stage of the appeals process involves taking the case to court. Taxpayers can appeal to the courts if they disagree with the tax tribunal’s decision. The courts can review the case and make a final decision.

It is important to note that the appeals process may be time-consuming and difficult, and before commencing the procedure, taxpayers are strongly encouraged to seek the assistance of an experienced tax professional. In addition, there are stringent time limits for submitting appeals, which means that if you wish to appeal a tax assessment, you need to move quickly in order to avoid missing the deadline.