This text guides on how to appeal a tax penalty in the UK, and includes specific information on different types of tax penalties.
(3-minute read)
We will cover:
- The step-by-step process of appealing a late tax penalty
- Different methods of appeal for different taxes
The general process
What are the steps to appealing a tax penalty?
1. File an appeal within 30 days.
2. Explain your reasons to HMRC.
3. Ask for a review if needed.
4. If HMRC denies your appeal, appeal to a tribunal online.
5. Follow the tribunal’s instructions for representation and evidence.
6. In certain cases, you can appeal the tribunal’s decision to the Upper Tribunal.
How to appeal a tax penalty?
The way you appeal depends on the type of tax:
-Indirect tax (VAT, Customs Duty, Excise Duty)
-Direct tax (Income Tax, Corporation Tax, Capital Gains Tax)
Your penalty may be changed or removed if you have a good reason.
Appealing a late filing tax penalty online
If you’re a business, you can use your HMRC online account to appeal a late VAT or corporation tax return penalty.
Some appeals need to be done using specific online forms that you must print and send to HMRC.
Use this website to appeal a late company account filing penalty from Companies House.
You should pay the late filing penalty, unless there are extreme reasons like a fire destroying your records.
Appealing Corporation Tax
If you’re a business, you can use your HMRC online account to appeal a late VAT or corporation tax return penalty.
Some appeals need to be done using specific online forms that you must print and send to HMRC.
To appeal a late VAT or Corporation Tax return, you must have a valid reason, like computer problems.
To appeal, you can fill out the form sent with the penalty letter or write a signed letter to HMRC.
Your letter must include:
- your name
- reference number (VAT or Corporation Tax registration number)
- detailed explanation of why the payment was late (including dates)
- any evidence for the above reasons
Send your letter to the HMRC office that handles your return, including your name, reference number, and full explanation of why your return was late.
If your late filing or payment was due to computer problems, include the date and details of any system error message.
Appealing a Self-Assessment Tax Penalty
If you were charged a penalty for not sending a tax return but don’t have to, you can cancel it by telling HMRC online or calling their helpline.
To appeal a late filing penalty, you’ll need:
- the date the penalty was issued
- the date you filed your tax return
- a reason for filing late
For a £100 late filing penalty from 2015 to 2016 and beyond, you can appeal online with a Government Gateway account or by mail to:
Self Assessment
HM Revenue and Customs
BX9 1AS
United Kingdom
For other penalties, you must send a completed form SA370 or a letter explaining your appeal to HMRC Self-Assessment.
If you need help with the appeal form, you can call HMCTS at 0300 123 1142 in England or Wales, or 0300 790 6234 in Scotland.
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