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Appealing Corporation Tax Decisions to the Tax Tribunal
If you disagree with a decision HMRC has made about your company's Corporation Tax, you have the right to challenge it through an independent tribunal. This article explains when you can appeal, the steps you must take first, and the deadlines you need to meet to protect your...
If you disagree with a decision HMRC has made about your company's Corporation Tax, you have the right to challenge it through an independent tribunal. This article explains when you can appeal, the steps you must take first, and the deadlines you need to meet to protect your rights.
What is the Tax Tribunal?
The First-tier Tribunal (Tax) is independent of HMRC and the government. It listens to both sides of an argument before making a decision. The tribunal can either replace HMRC's decision with a new one or ask HMRC to look at the decision again.
Corporation Tax is classified as a "direct tax", which means there are specific steps you must follow before the tribunal will hear your case.
Before You Appeal to the Tribunal
Request an HMRC Review First
For Corporation Tax decisions, you cannot appeal directly to the tribunal. You must first appeal the decision to HMRC itself. This is a mandatory step for all direct tax matters, which include Corporation Tax, Income Tax, Capital Gains Tax, and National Insurance contributions.
Requesting a review from HMRC can be quicker and cheaper than going to tribunal. If you disagree with the outcome of the review, you can then take your case to the independent tribunal.
Consider Alternative Dispute Resolution
You can also apply for alternative dispute resolution (ADR), which is an informal process where you and HMRC try to reach an agreement with the help of a facilitator. This is separate from both the review process and the tribunal route.
The Appeal Deadline
You usually have 30 days to appeal to the tax tribunal from the date on your decision letter (either the original HMRC decision or the review conclusion letter).
If you miss the 30-day deadline, you can still submit an appeal, but you must explain why it is late. A judge will then decide whether to accept your late appeal. Your application may be returned if anything is missing or incomplete.
Paying Your Tax Bill While You Appeal
Delay Payment Option
You can ask to delay paying a Corporation Tax bill while you're making an appeal to the tribunal. However, if you lose your appeal, you'll usually be charged interest on the amount owed for the period of the delay.
Do not wait until HMRC has agreed to delay payment before submitting your tribunal appeal. You can appeal even if you cannot pay your tax bill. When you submit your appeal, you must tell the tribunal if you've asked to delay payment.
If you ask to delay payment after you've already submitted your appeal, contact the tax tribunal on 0300 303 5857 or email taxappeals@justice.gov.uk to inform them.
Penalties Are Different
If you're appealing a penalty (rather than a tax assessment), you do not have to pay it upfront while your appeal is being considered.
How to Appeal to the Tribunal
Appeal Online
You can appeal online through the tax tribunal service. You'll need:
- A scan or photo of your original notice or review conclusion letter
- Written reasons for your appeal, explaining your side of the argument so the judge can understand your case
Appeal by Post
Download and fill in a notice of appeal form (T240) and send it to the tribunal at the address shown on the form.
If Someone Is Representing You
If a person representing you is not a practising solicitor or barrister, you need to download and fill in an authorisation form (T239).
Closing an HMRC Enquiry
If HMRC opens an enquiry into your company's tax return and you believe it should be closed, you can ask the tax tribunal to order HMRC to close it. You can apply to close an enquiry online or by post using form T245.
You cannot use this process if your return is being checked for indirect tax matters (such as VAT).
What Happens After You Appeal
The tribunal will send you a letter explaining what happens next. You may be asked to provide more documents to support your case.
Not all cases will have a hearing. However, you can request one. If a hearing is scheduled, you'll usually receive at least 14 days' notice of the date.
Hearings can take place by phone, by video, or in person. The tribunal will write to you with details about what you need to do to prepare.
Getting Help and Advice
You may want professional help before appealing. An accountant, tax adviser, or legal adviser can assist you with your case.
Free advice is available from:
- Citizens Advice
- TaxAid
- TaxHelp for Older People (if you're over 60)
The tribunal itself cannot give you legal advice, but you can contact them on 0300 303 5857 (Monday to Friday, 9am to 4pm) or email taxappeals@justice.gov.uk if you have questions about the appeal process.
Sources
This article provides general guidance based on current HMRC rules. For advice specific to your situation, speak to your accountant.
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