- Tax Saving
Sometimes, you may receive a tax assessment or decision from HM Revenue and Customs (HMRC) with which you disagree strongly. Now, this can be a frustrating and stressful experience. There is no need to feel stressed as there are some steps you can take to challenge the decision and resolve the issue. However, first, review the facts and figures that HMRC has used to make its decision. Moreover, if you firmly believe that HMRC has made an error, you can raise this with them and provide evidence to support your case. So, here are the actions you can take if you disagree with HMRC.
Request a review
If you disagree with an HMRC decision, the first step is to request a review. It is also known as an ‘internal review’. In this process, HMRC will review the decision and any additional information that you will provide. It can take 45 days to review. If the review process seems lengthy, HMRC may contact you to inform you about the same. You can also directly appeal to a tribunal, but it is best to first request a review.
Appeal to a tribunal
The tribunal is an independent body that considers appeals against HMRC decisions and listens to the arguments of both parties before making a decision. You must make your appeal within 30 days of receiving the decision. Remember, it is possible to appeal to a tribunal against most of the HMRC decisions related to direct tax, such as Income Tax, PAYE Tax, Corporation Tax, CGT, National Insurance contributions, Inheritance Tax and indirect tax, such as VAT, Customs Duty, and Excise Duty.
Consider alternative dispute resolution (ADR)
If you’re unable to resolve the issue through an internal review or even after making an appeal to the tribunal, you may consider alternative dispute resolution (ADR). This is a way of resolving disputes without going to court and involves a neutral third party helping to find a resolution. ADR can be a quicker and less formal way of resolving disputes than going to court.
Seek professional advice
If you’re unsure about how to challenge an HMRC decision or if you’re concerned about the potential cost or time involved, it may be worth seeking professional advice. A tax adviser or accountant can help you understand your options and provide guidance on the best course of action. They can also represent you in any discussions or negotiations with HMRC.
Challenging an HMRC decision can be lengthy and frustrating, but it’s important to be persistent and follow up regularly. Keep track of deadlines and ensure that you provide any requested information on time. If you’re not making progress, consider escalating the issue to a higher level within HMRC or seeking professional advice.
In conclusion, if you disagree with an HMRC decision, take action and challenge the decision. This may involve requesting a review, considering alternative dispute resolution, or appealing to a tribunal. Seeking professional advice can also be helpful, and it’s vital to keep detailed records and be persistent throughout the process. While it can be a challenging experience, taking the time to challenge an HMRC decision can ultimately help to ensure that your tax affairs are correct and fair.