Tax appeals are heard by the Tax Tribunal which is made of:
First Tier Tribunal
Deals with most cases.
Deals with complex cases.
What is a tax assessment?
Opening up a tax assessment means that either the taxpayer or HMRC thinks the taxpayer has paid too much or too little tax and wants this to be corrected.
The following table shows when a taxpayer or HMRC can open up a tax assessment.
HMRC can open a normal enquiry for a tax return, 12 months from the date of submission.
However, if HMRC suspects something more serious, they can raise a discovery assessment.
The time limit for raising this discovery assessment depends on the reason of suspicion of HMRC (mentioned below).
After HMRC raises a discovery assessment, taxpayers can raise an appeal within 30 days.
|Taxpayers claim for overpayment relief||4 years from the end of the tax year|
|HMRC can open an enquiry||12 months from submission of the return|
|HMRC can raise a discovery
|— No careless or deliberate behaviour||4 years from the end of the tax year|
|— Tax lost due to careless behaviour||6 years from the end of the tax year|
|— Tax lost due to deliberate behaviour||20 years from the end of the tax year|
|Taxpayers right of appeal
against an assessment
|30 days from the assessment — appeal in writing|