Appealing against a VAT penalty from HMRC means following the guidelines relating to an indirect tax appeal.
When you’re first told about the penalty, HMRC will also offer to you the opportunity to have the decision reviewed. An officer who had absolutely no previous involvement in the original decision to issue a penalty will carry out this review.
If you’d like your case to be reviewed, then you need to respond to the penalty charge in writing, to the address outlined on the letter, and no later than 30 days after the date the decision was reached.
In order for a review to be carried out, you need to provide HMRC with the following:
- Your name or the name of your business
- Your reference number
- The decision you disagree with and an explanation as to why
- If applicable, what you believe the correct figures to be and how you drew that conclusion
From there, the process should be completed within 45 days, though some cases can take longer, in which case you’ll be informed by HMRC.
If you’re still dissatisfied with the conclusions of the review, the next step is to take your appeal to the tribunal. This has to be done within 30 days of the decision being made.
If, within the 30 days, you’ve neither replied to HMRC nor appealed to the tribunal, it will be assumed that you agree with the findings of the review and are happy to pay any penalties declared.