Just because you have been issued with an HMRC VAT penalty, does not necessarily mean that it is correct. If you want to challenge a VAT penalty, you can pursue the appeals process. This may result in the penalty being reduced over overturned entirely.
If you wish to challenge a VAT penalty appeal, please contact us at Altion Law. Our VAT tax solicitors can guide you through the process.
Can you appeal against HMRC penalties?
Yes, you can appeal against HMRC penalties. Remember, HMRC makes mistakes, just like everyone else. You do not have to accept a VAT penalty if you think it is wrong. You are perfectly entitled to challenge HMRC’s decision. In fact, government figures released in 2016 showed that 65% of VAT penalties were amended by HMRC, once the taxpayer had taken the matter to the Tax Tribunal.
How do I appeal a HMRC penalty?
If you receive a formal VAT penalty and you disagree with the decision, the first step is to lodge an appeal. There is usually an appeal form attached to the penalty notice letter. This needs to be sent to HMRC within 30 days. You can fill out the form yourself, or you can ask our VAT tax solicitors to do it for you. It is recommended that you seek legal advice first, as this will give your appeal the best chance of success.
By making an appeal, you are requesting an independent HMRC review. An HMRC officer will then consider your appeal and determine whether to amend the VAT penalty decision. If the VAT penalty still is not amended or annulled, the next step is to take your case to the First Tier Tax Tribunal. The Tax Tribunal will hear evidence from both sides before deciding whether to:
- Uphold your VAT penalty
- Amend your VAT penalty
- Overturn your VAT penalty
Make an HMRC penalty appeal
If you wish to make an HMRC penalty appeal, you need to be mindful of the deadlines. For example, you have just 30 days to lodge an appeal, starting from the date of HMRC’s decision. Also, you have 30 days to submit an appeal to the Tax Tribunal, starting from the date of the internal review decision. If you fail to meet these deadlines, it is presumed that you accept the VAT penalty and your chance to make an appeal will be lost.
VAT tax solicitor
If you want to appeal an HMRC VAT penalty, please contact us at Altion Law. We appreciate the urgency of the situation and will begin work on your case straightaway. We will liaise with HMRC on your behalf, explaining why the VAT penalty decision is erroneous.