Tax Appeals and Reviews

The issue of an appealable decision marks the start of a formal process with defined legal stages, leading ultimately to the Tax Tribunal and potentially on to the Higher Courts.

We handle all stages of the appeal process up to and including litigation in the Tax Tribunal or above.

Our objective at all times is to resolve any dispute with HMRC at the earliest possible opportunity.  Litigation really must be the last resort.  However, sometimes HMRC’s position is driven by internal policy or Litigations and Settlement Strategy considerations such that compromise is impossible. Thankfully, such occasions are rare, and in our experience there is usually considerable scope for constructive action before recourse to the Tribunal becomes inevitable. 

Having said that, the prospect of the Tribunal is sometimes a very effective deterrent to HMRC, especially in cases where the technical content is not complex (eg PAYE disputes) or Closure Notice applications where HMRC are prolonging an enquiry or investigation.

HMRC Reviews

All appealable decisions by HMRC carry the right to a Review.  This is not an independent review, since it is undertaken by HMRC, but the process is supposed to involve a reconsideration of the case by someone who has not been involved in the original decision.

HMRC’s statistics show that on technically simple issues, (eg appeals against late filing penalties), there are reasonably good prospects (53%) for a successful outcome, but this drops down to only 15% for more complex issues. This is not surprising, since any complex issue is likely to have been the subject of detailed consideration by HMRC before their decision was made.

There is a powerful lesson here. The Review process is your first chance to secure a change of mind by HMRC.  If this is wasted, the process will then become focused towards a hearing before the Tax Tribunal, with all its attendant costs and uncertainties.  Therefore, it is essential to make the most of the Review process. A strong case must be put to HMRC to show them why they should change their mind. Asking HMRC to review their decision without giving good supporting reasons will only result in them rubber-stamping the original decision. Simply reiterating arguments that have already been presented will also fail in most cases. So a big opportunity will be lost.  The statistics show that it is possible to change HMRC’s mind, but they also show that it is hard to achieve.

We can help you

At Covertax, we have many years of experience in presenting arguments to HMRC, and we have submitted numerous applications under the new Review process. We know how to present your case in the best light, and we also know the most effective techniques to get HMRC to change their mind.  Submissions under the Review process have to be made to a very short timescale, which again adds to the difficulties. We are geared up to turning these assignments around quickly.

If you need help with drafting a review submission, or would like us to do the whole thing for you, please call us.

A free second opinion from Covertax

We offer a free review of any disputed HMRC decision or assessment. Simply send us the relevant correspondence. We will review it and follow up with a telephone conference to let you have our views on your prospects of success and best tactics for the way forward.

Call Tony Borman on 0845 643 5450 to arrange your review.

Please note this free service is for general information purposes and does not constitute formal professional advice from Covertax. We are, of course, always ready to help you with formal advice at our very competitive rates should you decide that you need some extra support.