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February 2011
Tax Appeals May Be Worth Pursuing
Taxpayers appealing against HMRC decisions or penalties on technical issues or for late or inaccurate filing of VAT returns have a better than 50:50 chance of success, according to recent statistics.
HM Revenue & Customs’ (HMRC) Internal Review Procedure was introduced in April 2009 so that taxpayers who disagree with an HMRC decision can request an HMRC review of the decision rather than taking the appeal directly to a tribunal.
According to figures released under a Freedom of Information request, over the last 18 months, HMRC completed 28,912 reviews of technical decisions and VAT penalties imposed on businesses, of which 16,270 – 56 per cent – were subsequently ruled incorrect.
HMRC says that the process is designed to provide a more consistent approach to the way it seeks to resolve disputes with people who disagree with appealable tax decisions that it makes. Reviews are carried out by a trained review officer, who has not previously been involved with the decision.
The figures were revealed following a Freedom of Information request by the UHY Hacker Young Group.
