articles/Business/challengetaxman-page2
Published 01/04/2011
Direct taxes
Where the disputed penalty or demand relates to a direct tax, you need to submit an appeal directly to the Tax Office. Where tax is due you also need to ask for collection of that tax to be postponed while your appeal is considered. You need submit the appeal and postponement application within 30 days of the date of the penalty notice or tax demand. As above, you may need to act very quickly if the Taxman's letter or notice has been delayed in the post.
When Taxman considers your appeal he may reduce the amount demanded, perhaps to nil. If you are happy with this, you need take no further action. If you are not happy you can ask for a review. As for indirect taxes, once the review has been completed you have another opportunity to submit a formal appeal against the penalty or tax demand to the Tax Tribunal.
What to send in with your appeal or review acceptance If you had a reasonable excuse for submitting the tax form late (or whatever was the cause of the penalty), explain those circumstances on the review acceptance form, or in a letter with your appeal. You can include evidence to support your position. For example if you relied on advice from the VAT National helpline, send in your record of that advice.
How long does the review take?
The Tax Office review should take about 45 days, but the review team may ask for longer if the matter is complex. It is in your interest to give the review team as long as they need. If they are time-pressured they are more likely to uphold the original amount of the penalty or tax demand.
When the review is complete you should receive a conclusion of review letter. If you are not happy with the conclusion, you have 30 days from the date of that letter to submit a formal appeal to the Tax Tribunal. If you do nothing within that 30 day period, the review conclusion will stand.
If you need advice about how to ask for a review or submit an appeal please ask one of our tax experts.
For more tax FAQ's please visit our personal tax advice section on the following link: http://twdaccounts.co.uk/clinic/tax-questions.html Mike Parkes, TWD Accountants - www.twdaccounts.co.uk.
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