How to Appeal a Tax Penalty

If you’ve been penalised by HM Revenue and Customs (HMRC), sometimes you have the right to appeal. With this in mind, Prestige Tax and Trust Services explains how to appeal a tax penalty.

Grounds for appeal

As a UK citizen you’re required to pay certain taxes to the government e.g. income tax. HMRC is the governmental body responsible for overseeing taxation, and in some instances they may see fit to issue with a penalty if they believe you’ve acted inappropriately e.g. under-paid tax.

In some circumstances you can appeal, as long as you do so within 30 days of receiving notice. If you’ve been issued a penalty for sending your tax return late, filing an incorrect return, paying tax late, failing to keep adequate records or not paying enough tax, you have grounds to appeal. They’ll determine whether you’ve provided a reasonable excuse, and amend/cancel your penalty as they see fit.

Appeals process

There are several ways to appeal a tax penalty. If HRMC posted a penalty letter to you, fill in the appeal form that comes with it and send it HMRC. If you didn’t receive an appeal form, you can send a signed letter instead. Ensure the letter includes your name, reference number e.g. VAT registration number, and full details of why your tax return/payment was late. You should send this to the HMRC office related to the return in question.

If you’ve been issued a penalty for Self Assessment, you can appeal by completing form SA370 or writing a letter to HMRC (include your full reasons for appealing). Send it to HMRC’s office for Self Assessment enquiries. You can appeal a PAYE penalty online with the PAYE for employers’ tool, and use this form to appeal a VAT penalty. If you filed a corporation tax return late due to computer problems, you can appeal by sending a company tax returns: IT problems (WT1) form to HMRC.

Prestige Tax and Trust Services

If you want to ensure that your taxes are handled appropriately, you may want to invest in a tax planning service such as that supplied by Prestige Tax and Trust Services. Our team have the legal experience you need to execute all tax planning tasks appropriately and efficiently.

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