Tax Tribunal Decisions, Appealing an Decision by HMRC

The government has announced that plans may be introduced to charge individuals for challenging decisions made by HMRC in relation to tax avoidance disputes.

The proposals are linked to the government’s plans to reduce the £1bn cost of running the civil court and tribunal service across the country.

The MoJ is currently consulting on proposals to charge individuals for referring decisions made by HMRC, over disputes in tax avoidance cases, to the First and Upper Tier Tax Tribunals, as well as charging a fee to run the hearings.

Suggested fees for referring a case to the First Tier Tax Tribunal are between £50 and £200, with the cost of running the hearing, depending on the complexity of the case, ranging between £200 and £1000. For Upper Tier Tribunal referrals a fee of £100 has been suggested, with the cost of a hearing reaching up to £2000.

The proposals have been met with criticism from both accountants and lawyers who believe that, if granted, the plans would denied individuals the access to justice. It has also been suggested that the decision could swing the balance of power in favour of HMRC.

Further criticism has identified the possible instances when the amount of tax in dispute is low – would the new fees dissuade individuals from pursuing an appeal if the cost of doing so outweighed the amount they had to pay to HMRC, for example.

The current system operates on a two tier basis. Should an individual disagree with HMRC’s decision in relation to the amount of disputed tax, then they can refer the case to the First Tier Tax Tribunal. If the individual disputes the decision made by the First Tier Tribunal then it can refer the case to the Upper Tier Tax Tribunal.

The system is seen as a last resort for those in dispute with HMRC over tax liabailities.

We have a team of specialist tax investigations and voluntary disclosures professionals. With HMRC gathering more information and powers in its fight against tax evasion and tax avoidance, the net would appear to be closing tighter and tighter on individuals who may have underpaid tax.

To discuss your circumstances with a member of our experienced and discrete team in complete confidence you can call us on 0113 387 5670 or fill out an Enquiry Form , with your phone number included, and we will get back to you straight away.