You have received a tax amount and, you find it not justifiable and incorrect. You do have an option to check it with the HMRC on the tax decision for the amount you are held liable.
How do I appeal against a tax decision?
Along with the decision letter, the HMRC will inform you if you can appeal against a tax decision. You usually have 30 days to appeal after you receive the decision letter. If you haven’t received any information you can also contact HMRC for clarification.
HMRC will consider the appeal and will let you know in writing if they are ready to make the changes. If you are unsatisfied with the result, you have another 30 days to request a review.
A new officer will be assigned, who was not involved with your appeal previously and will go through your case again.
If you still do not agree with HMRC after the review, you can still proceed further with your case to the First-tier tax tribunal. The tribunal will then consider your case and make a decision. If you are not satisfied with the decision, you have a provision to further appeal for another review. But you must note that if you are planning to proceed with your case, you may have to incur the HMRC’s costs along with your own. So we urge you to think before you act if you are planning something like this.
Due to the pandemic, HMRC will give you an extra three months to appeal any decision dated February 2020 or later.
Am I eligible to appeal?
You can appeal if you have the right and if HMRC has informed or in the following cases where HMRC :
- Are probing for a lot of information without a conclusion.
- Altered your Self-assessment after an inquiry because they think you got it wrong.
- Is denying a claim to relief after an assessment.
- Demanding a penalty or surcharge unreasonably. You could delay the payment of a tax bill or, penalty if you disagree with the amount.