News

HM Revenue & Customs (HMRC) have introduced one system for appealing tax decisions that you disagree with.

The following questions and answers provide a basic guide to the topic, however if you would like more detailed information or advice on how the new appeals process may affect you please speak to your usual Hazlewoods contact or e-mail tax@hazlewoods.co.uk.

When does it apply?
It applies to tax decisions made on or after 1 April 2009 (excluding Tax Credits, Child Benefit and Child Trust Fund).

What should I do if I disagree with a decision made by HMRC
When HMRC make a decision that you can appeal against they should write and tell you. They will explain how they arrived at their decision and tell you about your appeal rights.

If you are a client of Hazlewoods we should already be fully aware of the situation. However if you are not a client of Hazlewoods and do not have a professional tax advisor or do not have an advisor experienced in dealing with disagreements with HMRC please contact us at tax@hazlewoods.co.uk.

If you and you advisor do not agree with the decision, usually your advisor, will need to write and tell HMRC within 30 days of the decision.

At this stage if you think HMRC have missed something or you have further information to support your case this should be included within the appeal letter.

If you do supply further information, HMRC will consider it and then write to
tell you if the information changes their decision, or if not they will explain why.

It is hoped that most disagreements will continue to be resolved at this stage and this is where the use of a qualified tax advisor, such as Hazlewoods, can really help. This is because we have proven success at getting agreements with HMRC, thus saving you time, money and stress.

What if an agreement is not reached at this stage?
If you and your advisor are not satisfied with the outcome of the discussions with HMRCs you can either:

• have your case reviewed by a different officer from the one who made the decision; or 
• have your case heard by an independent tax tribunal.

If you opt to have your case reviewed you will still be able to appeal to the tribunalm if you disagree with the outcome.

What happens if I opt for a review?
You and your advisor can choose whether or not to have a review. Either:

• HMRC will offer a review (in which case there will be 30 days to decide whether to have one); or
• if HMRC have not offered a review, one can be requested at any stage during the discussion about the dispute.

If you or your advisor tell HMRC that a review is wanted HMRC must complete it within 45 days unless another time limit is agreed. Reviews are carried out by HMRC staff not previously involved in the matter that is in dispute. Again further information about the case can be provided at this time. The Tribunal can not be asked to hear the case until the time limit has expired or we have told you the outcome of the review.

Once the review is complete, HMRC will write and tell you and your advisor the outcome, and explain their reasons. There is then 30 days in which the tribunal can be asked to hear the case.

How do I appeal to the tribunal?
You or your advisor either:

• complete a Tribunals Service appeal form available from the Tribunals Service website http://www.tribunals.gov.uk/
• phone the Tribunals Service  on 0845 223 8080 for a copy, or
• write to the Tribunals Service.

What will the Tribunals Service do?
The Tribunals Service will either:

• arrange a hearing to decide your appeal, or
• in more straightforward cases, decide the appeal on the basis of information sent by you, your advisor and HMRC without the need for a hearing.

If you and your advisor want your case heard by the tribunal and it is a direct tax case, it must first have been appealed to HMRC.

Do I have to pay tax during reviews and appeals?

• If the decision is about a direct tax matter you or your advisor can usually ask HMRC to postpone part or all of the tax in dispute until the appeal is settled. Interest will continue to accrue on any unpaid tax that is found to be due when the appeal is settled.
• If the decision relates to an indirect tax matter (except for Customs matters), HMRC will not collect the disputed tax while the review of the decision is carried out. But normally you must pay the disputed tax before any appeal can be heard by the tribunal. If paying the tax would cause you hardship you or your advisor may ask HMRC not to collect it while the appeal is ongoing.