You’ve been through the ringer. You know you’ve been unfairly taxed, and you want to appeal against this decision.
Whether you feel like the HMRC has been too harsh with their assessment of your taxes or whether you think they’ve missed out on some of your deductions, appealing can help set things straight. But what does that process look like? What do you ought to do before you appeal? And how do you handle it once it’s all over? We’ve got answers for all of those questions—and more!
Determine if you can appeal
Tax decisions can be confusing, and sometimes you may feel like you don’t understand the decision made. But don’t worry—we’ve got your back.
First, make sure that you have received a letter from HMRC indicating whether or not your tax decision can be appealed. If it states that it can’t be appealed, there’s nothing for you to do—but if it says that it can be appealed, move to the next step.
Determine if it is a direct or indirect tax
There are two types of levies: direct and indirect. Each has a different procedure for appealing.
Direct duties are paid directly to the government and are sent in with your tax return. Indirect taxes are paid at the point of sale or on the importation of goods (such as excise duty).
How do you know what type of tax it is? It’s simple: it’s a direct tax if you have to pay it. If you don’t have to pay it, it’s an indirect tax.
Direct tax includes:
- Income Tax
- PAYE tax
- Corporation Tax
- Capital Gains Tax
- National Insurance contributions
- Inheritance Tax
Indirect tax includes:
- VAT
- Excise Duty
- Customs Duty
- environmental taxes like Plastic Packing Tax, Climate Change Levy, and so forth
How to appeal a direct tax
If you disagree with a decision by the HMRC, you can appeal it. You can take the help of leading HMRC civil tax investigation solicitors to fight your case. Kangs Solicitors is one of the reputed tax solicitors in the UK. The decision letter you will receive from HMRC will indicate how to appeal and the deadline. The deadline is usually within 30 days of receiving your decision letter.
To appeal, use the Appeal Form that came with your decision letter. If you didn’t receive one, write to the HMRC department related to your case—the address should be on the top right corner of your decision letter. In your letter include:
- your name or business name
- your tax reference number – this is captured on the decision letter
- Indicate what you disagree with and why
- Include what you think the correct tax is
- Show how you’ve calculated them
- Include any extra information necessary
How to appeal indirect tax
If you receive an indirect tax decision from HMRC, you have 30 days to accept or appeal the decision. You can also appeal after 30 days if extenuating circumstances prevent you from accepting or appealing within 30 days.
If you choose to appeal, your case will be reviewed by someone not part of the original decision. The person reviewing your case will consider all relevant information to make a new decision based on the evidence presented.
Conclusion
At times, you have to stand up for yourself.
If you feel like the decision was unfair or inaccurate, you can appeal it by following the above steps. They’ll review your case and make a new decision based on what they’ve found in their investigation.
Hang in there! You’ve got this!
