If you have missed the deadline for appealing an HMRC assessment or penalty, you may still be able to bring a late appeal. You should act immediately: the length of the delay, the reason for it and what you did after discovering the missed deadline can all affect whether the appeal is admitted.
What is the deadline for appealing an HMRC decision?
For many direct tax decisions an appeal must normally be made in writing to HMRC within 30 days. For many indirect tax decisions, including VAT, the appeal is ordinarily notified to the First-tier Tribunal within 30 days. Penalties have their own appeal provisions. Always check the decision letter carefully.
What should you do if the 30-day deadline has expired?
Make the application for permission to appeal late as soon as possible. For direct tax appeals under section 49 TMA 1970 the late appeal should normally be sent to HMRC first. If HMRC refuses, the taxpayer can apply to the First-tier Tribunal for permission to appeal out of time.
What test does the First-tier Tribunal apply?
The leading authority is Martland v HMRC [2018] UKUT 178 (TCC). The First-tier Tribunal applies a three-stage approach:
- How serious and significant was the delay?
- Why was the appeal late?
- What do all the circumstances show?
Do the merits of the tax appeal matter?
An application for permission to appeal late is not a trial of the underlying tax dispute. The merits may have some relevance where the appeal is obviously hopeless or obviously strong, but the First-tier Tribunal’s primary focus remains on the delay, the explanation and the surrounding circumstances.
What evidence should accompany a late-appeal application?
A late-appeal application should generally include:
- A copy of the HMRC decision and the proposed grounds of appeal.
- A clear chronological account of the delay.
- A witness statement where needed, along with relevant medical evidence.
- Correspondence with HMRC or advisers.
- Evidence showing when the missed deadline was discovered.
When is a late appeal worth pursuing?
Consider whether the underlying tax appeal has a proper basis, how long the delay is, whether the likely benefit is proportionate to the cost and stress, and the costs rules that apply in the First-tier Tribunal.
Specialist advice on late tax appeals
Where a deadline has been missed, the position should be assessed promptly. Rebecca Sheldon advises on tax disputes, HMRC decisions and tribunal procedure, including applications for permission to appeal out of time.