How to Appeal to the Tax First-Tier Tribunal?

Learn how and when to appeal to a tax tribunal?

The First-Tier Tribunal (FTT) is a part of the judicial system in the UK and is believed to be a neutral court that fairly considers justifications from both parties in a case, before ruling a decision. An appeal can be made to the FTT to challenge any decision made by:

1. HM Revenue & Customs (HMRC)
2. The Welsh Revenue Authority (WRA)
3. Border Force
4. The National Crime Agency (NCA)

You can challenge any decision regarding ‘direct’ or ‘indirect’ tax.

Examples of direct tax that you can challenge: Income tax, Corporation Tax, Capital gains tax (CGT), PAYE tax, National Insurance contributions (NIC), Statutory Sick pay, Inheritance tax, Statutory maternity pay.

• To challenge direct tax, you must file an appeal to HM revenue & customs (HMRC) first.

Examples of indirect tax that can be challenged:  Value added tax (VAT), excise duty, customs duty

• There are no obligations to file an appeal to HMRC first, to challenge indirect tax, you can appeal straight to the court.

Make sure you speak to your accountant, tax accountant or your accounts manager in the accounting firm you work with to ascertain if you have sufficient data and supporting documents to being successful at tribunal.

Remember: You can only file an appeal within the time frame mentioned in your decision letter and not otherwise.

Individuals or businesses that are trying to work out their personal or business tax issues respectively can apply for alternative dispute resolution (ADR) after they have appealed for an HMRC decision.

What if you are unable to pay?

Though you are liable to pay anything that has been declared as your liability by HMRC, if the circumstances don’t allow you to pay for what you owe to HMRC, then you can write a hardship application to HMRC for a delay in payment owed. However, if HMRC denies the application, you can then make an appeal to the First-Tier Tribunal (FTT).

You can also ask you, online accountants, to help you set up a payment plan or use a financial provider who can help you fund your payments.

How to make an appeal to First-Tier Tribunal about seized goods?

In the case where your goods have been seized, you should request the concerned authorities (HMRC or Border Force) to start condemnation proceedings, only if you think the goods have been confiscated on an unjust basis. If not, then you can always make an appeal to the First-Tier Tribunal FTT. However, the reasoning behind the confiscation of your goods, whether right or wrong, cannot be decided by FTT.

You are liable to file an appeal to the First-Tier Tribunal (FTT) if the following conditions apply:

1. Concerned authorities (HMRC & Border Force) deny the request to return your seized goods
2. You must pay to the authorities before they handover your seized goods back to you.
3. Authorities are trying to charge you a penalty
4. Authorities sent you an assessment for duty

It is important that you try and ask the concerned authorities at least once to reconsider their decision before you carry on with filing an appeal.

What if HMRC decides to open an enquiry on your tax return?

In some instances, HMRC may decide to conduct an investigation into your tax return regarding ‘direct tax’ that may include your Income tax, Capital Gains Tax (CGT) or National Insurance contributions (NIC). If you come across such a scenario, then you can apply for a ‘Closure notice’ if you want to halt the investigation. However, you should remember, that you cannot apply for a ‘Closure notice’ if the investigation revolves around ‘Indirect tax’. 

The decision of whether the enquiry should proceed or not is entirely up to the tribunal. Speak to your accountants or personal tax accountants to decide the best option to proceed with.

What if NCA decides to open an enquiry on your tax return?

You may get into a tax investigation by the National Crimes Agency (NCA) instead of HMRC, If they have raised suspicion on your involvement in illegal activities such as money laundering, fraud, etc. This can be very serious, if you are not sure why or how this has come about, speak to a legal specialist and your accountants immediately.

If this happens, you can always file an appeal in writing to the NCA if you think their decision is unfair and unjustified. You can send your appeal in writing to the following address:

National Crime Agency, Units 1-6 Citadel Place, Tinworth Street, London, SE11 5EF

What if WRA decides to open an enquiry on your tax return?

WRA can investigate you on your tax return for Land transaction Tax and Landfill Disposals Tax. You can challenge the decision by filing an appeal, which you think is incorrect and can request for the termination of the investigation into your tax return.

Remember: You can only file an appeal within the time frame mentioned in your decision letter and not otherwise.

You are liable to pay for anything that has been declared as your liability by the Welsh Revenue Authority (WRA). You may request WRA to delay the payment owed until the verdict of your appeal has been announced. It is advisable to request WRA to reconsider their decision before you file your appeal.

It is advisable that you seek professional advice from a tax specialist if you think your accounting figures add up correctly and we also advise you seek legal advice before filing an appeal to the court. You may seek guidance from a competitive accounting firm.

How to appeal to the tax First-Tier Tribunal online?

If you want to file an appeal to the tribune online, you can follow the essentials to complete your request:

1. Soft copy or photo of the original notice issued or review conclusion letter
2. Detailed reasoning behind your appeal, this is to get the judge to understand your perspective or position on the matter

You may avail the online service to apply for the termination of any unjustified enquiry.

• Remember: You can also file an appeal by post

What happens after you successfully filed an appeal to First-Tier Tribunal?

After you have successfully made an appeal to the First-Tier Tribunal, you will receive a letter which guides you about the procedure and might request you to provide additional documents to support your case.

You can even request them for a hearing, as most of the cases don’t have one. Once you request one, you will then be issued a 14 days notice of the date of your hearing, along with guidance provided by the tribunal of what needs to be done on your behalf.

Clear House Accountants are specialist Accountants in London who have helped businesses and individuals tackle tax investigations by HMRC. We successfully guide our clients to help them proceed in the most effective and safest way.

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