How to appeal to the First-tier Tax Tribunal

Question 1

About this guide

Accepted Answer

This guide explains:

how to appeal to the First-tier Tribunal (Tax Chamber)
what happens with the appeal once you’ve made it
what happens before the judge makes their decision
what you can do afterwards

This is only a guide. It does not cover every situation or provide a full explanation of the procedural rules.

You should also read the overview guidance on appealing to the tax tribunal.

Question 2

About the tribunal

Accepted Answer

The First-tier Tribunal (Tax Chamber) hears and decides tax-related appeals against most decisions issued by HM Revenue and Customs (HMRC) and against some decisions issued by:

Welsh Revenue Authority (WRA)
Border Force
National Crime Agency (NCA)
Gambling Commission (only decisions about the Economic Crime Levy)

Decisions on tax credit (which is a benefit entitlement) issued by HMRC cannot be heard by the tribunal. There are different ways to appeal decisions about tax credits and Council Tax. See a list of examples of decisions that can be appealed to the First-tier Tribunal.

The tax appeals system, and all judges and members, are independent of HMRC, the WRA, Border Force, the NCA and the Gambling Commission.

Judges and tribunal staff cannot give legal advice. Before you appeal, you may wish to find legal advice.

Contact the First-tier Tribunal

HM Courts and Tribunals Service
First-tier Tribunal (Tax Chamber)
PO Box 16972
Birmingham
B16 6TZ

Telephone: 0300 303 5857
Monday to Friday, 9am to 4pm
Find out about call charges

Email: taxappeals@justice.gov.uk

What the tribunal can determine

Appeals

You can appeal to the First-tier Tribunal if an appealable decision has been issued to you or directly affects your liability to pay tax. However, not every tax-related decision carries a right of appeal. Appeals against tax credit decisions can only be heard by the Social Entitlement Chamber.

The First-tier Tribunal cannot hear complaints about the conduct of HMRC. Contact HMRC if you are unhappy about the way they have dealt with your tax affairs. If you have already been through HMRC’s complaint process and still need to complain, contact the Adjudicator’s Office.

Applications and referrals

The First-tier Tribunal (Tax Chamber) can also hear and decide originating application and referrals.

See a list of examples of applications and referrals.

Question 3

Before you appeal

Accepted Answer

There are steps you must take before you can submit an appeal to the First-tier Tribunal. There are different rules depending on the type of tax.

If your appeal is about direct tax, for example, income tax or corporation tax:

you must appeal to HMRC or the WRA before you appeal to the First-tier Tribunal
payment of the tax in dispute is usually postponed until the outcome of the appeal is known
if HMRC or the WRA do not agree to postpone collection of the tax while you appeal, you can apply to the tribunal for postponement

If your appeal is about indirect tax, for example, value added tax or customs duties:

You do not need to wait for HMRC to respond to your hardship application before you submit your appeal to the First-tier Tribunal which should be submitted within the required time limit.

If HMRC do not agree you would suffer hardship, the tribunal will arrange a hearing so it can decide whether to waive the requirement.

If payment of the tax in dispute has been delayed and you lose your appeal, you are likely to have to pay interest.

Time limits for appealing

There are time limits in which you must make your appeal to the tribunal about indirect tax or tell them of your appeal about direct tax. The time limit is 30 days from:

the view of the matter letter – direct tax
the assessment or decision – indirect tax
a review conclusion letter – either indirect or direct tax

The time limits which apply will be stated in the decision letter issued to you. The time runs from the date printed on the letter or assessment, not from the date you receive it.

If you have not appealed within the time limit, you can apply to the tribunal for permission to bring a late appeal on the notice of appeal.

You must provide a good reason for the delay. Late appeals will only be admitted if a judge considers in the circumstances that it is in the interests of justice. They will take account of the length of and reasons for the delay.

Question 4

About applications

Accepted Answer

If legislation allows, you can make an application or referral to the First-tier Tribunal before a final decision is made by HMRC. These are called ‘originating applications’.

See a list of the most common types of application.

There are different rules about what you must do and time limits that apply when you make an originating application or referral to the First-tier Tribunal.

You may want to seek support with your appeal.

Question 5

How to appeal or make an originating application to the First-tier Tribunal

Accepted Answer

You can appeal to the First-tier Tribunal:

online
using the notice of appeal form – you can email or post the completed form to the tribunal office

The online form and notice of appeal form list the information and documents to include with the application.

You can make some applications using the notice of application form. Complete and send it to the tribunal office by email or post.

If you cannot use the online form or relevant paper form to appeal or make your originating application, you can write to the tribunal by email or post. You should include:

your name and address
the name and address of any representative
an address where documents can be sent to you
details of the decision you are appealing
the result you are seeking
details of your reasons for appealing, including any facts or law that you rely upon
a copy of the decision you are appealing against, or the reason why you cannot obtain a copy

If your appeal or application is late, you must explain why.

The costs of appealing

There is no fee for appealing to the First-tier Tribunal.

In most appeals, each side will pay their own costs. Your own costs will depend on the difficulty of your appeal and whether you use a representative.

However, in some cases, the tribunal may order one party to pay another party’s costs. This will happen only if:

your appeal has been allocated to the complex category and you have not asked that the appeal be excluded from potential liability for costs
the tribunal agrees that one party has behaved unreasonably in bringing, defending or conducting the appeal

If payment of the tax in dispute has been delayed and you lose your appeal, you are likely to have to pay interest.

Support with your appeal and representatives

You may want to have someone support you to:

fill in the appeal form
deal with letters from the tribunal
make and respond to submissions
appear in front of the judge for you if there is a hearing

This person is known as a ‘representative’. You may employ a solicitor, an accountant or any other person to act as your representative.

Public funding, such as legal aid, is rarely available for tax appeals. If you are on a low income, you may be able to get free help from:

If you have a representative, you must tell the tribunal your representative’s name and address (and email address if they have one).

If your representative is a practicing solicitor or barrister, they can tell the tribunal on your behalf.

If your representative is not a solicitor or barrister, you must have completed the representative authorisation form first.

Even if you do not have a representative, you can bring another person to a hearing. With the judge’s permission, that person can help you to present your case.

As there are time limits for appealing, you may have to appeal before you have found a representative. If so, you can tell the tribunal after you have appointed them.

Question 6

After you appeal

Accepted Answer

If your appeal is incomplete, the tribunal office will return it to you or your representative, if you have one, to provide any missing information or documents. It may mean that, when you resubmit it, it will be a late appeal – you will have to explain why it has become late.

Once you have submitted a complete appeal to the tribunal, they will:

The tribunal will allocate your appeal to a case category, depending on the complexity of your appeal and the amount in dispute.

If you submitted your appeal by post or by email, we will send you a reference number when we acknowledge the appeal. If you submitted your appeal online, you will have been allocated a reference number immediately when you submitted your appeal. You should quote your reference number when contacting the tribunal.

Alternative dispute resolution

Once you have a First-tier Tribunal reference number, if your appeal is against a decision of HMRC, it may be appropriate to engage with them to see if you can resolve the dispute without coming to a hearing. This is known as ‘alternative dispute resolution’ (ADR).

If you are accepted for ADR, your appeal will be put on hold by the tribunal for a short period to enable you to engage in ADR with HMRC.

The tribunal is under a statutory obligation to facilitate and encourage ADR. There is also a power to direct the parties to engage in ADR where a judge considers it appropriate.

Case categories

Default paper appeals

Once your appeal has been acknowledged by the First-tier Tribunal, the other party has 42 days to send you and the tribunal:

a statement of case, setting out their position on your appeal
an electronic set of documents relevant to your appeal, called a ‘bundle’

You will then have 30 days to submit any written response, and any further documents, you wish to send to the tribunal and the other party. Quote your reference number when contacting the tribunal.

Default paper appeals are usually decided without a hearing. However, you or the other party can ask for a hearing.

Unless a hearing has been requested, the tribunal will send the documents and information submitted by you and the other party to a judge to consider. The tribunal will send the written decision to you as soon as possible after the judge has decided your appeal.

Basic appeals

Once your appeal has been acknowledged by the First-tier Tribunal, the other party has 42 days to send you and the tribunal:

a statement of reasons, setting out their position on your appeal
an electronic set of documents relevant to your appeal, called a ‘bundle’

You will then have 14 days to submit any written response, and any further documents, you wish to send to the tribunal and the other party. Quote your reference number when contacting the tribunal.

You can also ask the other party to send you a paper copy of the bundle.

The tribunal will then arrange a hearing for your appeal.

Appeals in the basic category are usually heard at a video hearing.

Standard appeals

Once your appeal has been acknowledged by the First-tier Tribunal, the other party has 60 days to send you and the tribunal a statement of case, setting out their position on your appeal.

You will then have 42 days to provide the tribunal and the other party with a list of the documents you will rely upon at the hearing. The other party will also provide you with a list of the documents on which they intend to rely at the hearing.

The tribunal will issue further directions setting out what you and the other party must do to prepare for the hearing. Further guidance is issued with the directions but you and the other party must:

exchange copies of documents
prepare and exchange witness statements
provide information about when you and your witnesses are available to attend a hearing
provide a written outline of the arguments to be made at the hearing – called a ‘skeleton argument’

One party will be directed to prepare an electronic set of documents for the hearing, called a bundle.

Complex appeals

When your appeal is allocated to the complex category, you have 28 days to make a written request to the First-tier Tribunal to be excluded from potential liability for costs or expenses if you wish. If you choose to be excluded, you can recover any reasonable costs in connection with the appeal – but only if your appeal is successful. If your appeal is unsuccessful, the other party will be entitled to recover their reasonable costs from you.

Once your appeal has been acknowledged by the First-tier Tribunal, the other party has 60 days to send you and the First-tier Tribunal a statement of case, setting out their position on your appeal.

You will then have 42 days to provide the tribunal and the other party with a list of the documents you will rely upon at the hearing. The other party will also provide you with a list of the documents on which they intend to rely at the hearing.

The tribunal will then issue further directions setting out what you and the other party must do to prepare for the hearing. Further guidance is issued with the directions but you and the other party must:

exchange copies of documents
prepare and exchange witness statements
provide information about when you and your witnesses are available to attend a hearing
provide a written outline of the arguments to be made at the hearing (‘skeleton argument’)

One party will be directed to prepare an electronic set of documents for the hearing, called a bundle.

Question 7

The hearing

Accepted Answer

Unless your appeal is in the default paper category, it will usually be decided at or after a hearing.

Venue

The hearing is sometimes at a First-tier Tribunal venue but it can be online at a video hearing. Both parties are expected to attend the hearing.

The main tribunal venues are London, Birmingham, Manchester and Edinburgh. Hearings are sometimes held in other court venues if people are unable to travel.

Where possible the tribunal will arrange the hearing based on the preferences of the parties, if they are provided in the directions, for standard and complex category cases. The tribunal office will send you details of the date, time and place of your hearing. The time stated is the latest time by which you should arrive at the venue.

Video hearings

If the tribunal arranges a video hearing, they will also give you instructions on how to join. You will be asked to complete and return a video hearing attendance form. Find out how to have someone to support you during a remote hearing.

It is not possible for you or a witness to join a video hearing from outside the UK, unless the government of that country has given permission for people in that country to provide evidence by video link. See our guidance on taking and giving evidence by video link from abroad in UK court cases and tribunals.

Documents you’ll need

A set of documents will have been prepared in advance for the hearing – this is called a ‘bundle’. You should bring your paper copy, if you have one, or a device you can open the electronic bundle on, such as a laptop, to the hearing. You will need a paper or electronic copy of the bundle with you to view the documents during the hearing.

Who’ll be at the hearing

The hearing will usually be before a panel made up of a judge and a professionally qualified member. However, sometimes the appeal will be heard by a judge only.

Hearings are normally held in public. A list of upcoming hearings is published so observers might attend, although it is rare that they do.

If you have appointed a representative, they should attend.

Anyone who has prepared a witness statement should also attend.

You can also ask a friend, family member or colleague to the hearing.

What happens at the hearing

At the hearing each party will have the opportunity to:

make their case, including explaining the relevant law
show the panel relevant documents in the bundle
call witnesses to give evidence

The judge or panel may give a decision at the end of the hearing, however, this is relatively unusual. A written decision will always be sent to you or your representative, if you have one, after the hearing has taken place.

If you cannot attend the hearing

If you cannot attend the hearing, you should contact the First-tier Tribunal as soon as possible, explaining your reasons. You should also tell the other party.

If you want to postpone the hearing to another date, you should contact the tribunal as soon as possible to explain why. A judge will decide what should happen. You should not assume a hearing will be cancelled or postponed because you have asked – a hearing will remain scheduled unless the tribunal tells you that it has been cancelled.

If you do not turn up at the hearing, the panel or judge will decide whether to go ahead without you.

If you are delayed on your journey to the hearing, you should contact the tribunal to let them know as soon as possible.

Question 8

Withdrawing your appeal

Accepted Answer

If you want to withdraw your appeal, you must tell the tribunal and other party in writing by email or post.

If your appeal is withdrawn but you then want it to be reinstated, you must write to the tribunal within 30 days of the date you informed the other party of your withdrawal. If you are late, it may not be possible for your appeal to be reinstated.

Question 9

The decision

Accepted Answer

The First-tier Tribunal will always send you or your representative, a written decision.

The written decision will include full or summary reasons for the decision including relevant findings of fact. However, if you and the other party have agreed that a short decision can be issued, the tribunal will not include full or summary reasons in the written decision.

Question 10

If you lose your case

Accepted Answer

If you do not agree with the decision, you can:

apply to the First-tier Tribunal for the decision to be cancelled (set aside) on certain grounds
apply to the First-tier Tribunal for permission to appeal to the Upper Tribunal if you consider there has been an error of law in the decision

If you want to make an application to the First-tier Tribunal for an order for your costs, the tribunal must receive this within 28 days of the written decision. It must include a schedule of the costs and expenses you are claiming.

Apply to have the decision cancelled (set aside)

The judge may cancel the decision if they consider it is in the interests of justice to do so – this is called ‘setting aside’ the decision.

They may do this if something unusual or unexpected has happened in the proceedings, such as a document has been lost or a party or their representative was not present at a hearing.

You must make an application in writing by email or post to the First-tier Tribunal to set aside a decision within 28 days of the tribunal sending the decision notice.

Apply for permission to appeal to the Upper Tribunal

The Upper Tribunal can hear appeals against decisions by the First-tier Tribunal. Both you and the other party may apply for permission to the Upper Tribunal. If you choose not to use the permission to appeal form you can make your application in writing by email or post.

The Upper Tribunal (Tax and Chancery Chamber) only hears appeals against First-tier Tribunal decisions that may be wrong on a point of law. There is no right of appeal where you simply disagree with the outcome.

Ask for permission to appeal

Before you appeal to the Upper Tribunal, you must first apply to the First-tier Tribunal for permission to appeal.

To apply for permission to appeal you must have a full decision. If you received a summary or short judgment you will need to apply for full facts and reasons within 28 days of receiving the summary or short decision.

The First-tier Tribunal must receive your application for permission to appeal to the Upper Tribunal within 56 days of the First-tier Tribunal sending you the most recent:

written notice of the full fact and reasons for the decision
amended reasons for, or a correction of, the decision following review
notification that an application to cancel, whether made in time or with an extension of time, has not been successful

A judge may extend this time limit if they feel it is in the interests of justice to do so.

You must make your application by completing the permission to appeal form or by contacting the First-tier Tribunal. When you ask for permission to appeal you must identify the errors of law that you think have been made and saying what result you are seeking.

When the judge receives your application for permission to appeal, they may review the decision and cancel it, change the reasons for it or correct it. If the tribunal decides to review the decision, it will ask you to provide your comments on any action it plans to take.

If the judge does not review the decision, or decides not to change the decision, they may grant you permission to appeal to the Upper Tribunal or permission may be refused. The First-tier Tribunal will tell you in writing either by email or post and give reasons if permission is refused, either completely or in respect of any grounds of appeal.

How to apply or appeal to the Upper Tribunal

If permission is granted

If the First-tier Tribunal grants you permission to appeal, you can submit your appeal to the Upper Tribunal. You must do this within 30 days of receiving the decision from the First-tier Tribunal granting you permission. The First-tier Tribunal cannot extend this time limit.

If permission is refused

If the First-tier Tribunal refuses you permission to appeal, you can apply to the Upper Tribunal for permission to appeal. You must do this within 30 days of receiving the First-tier Tribunal decision refusing you permission. The First-tier Tribunal cannot extend this time limit.

The Upper Tribunal guidance provides more detail about how to apply to the Upper Tribunal for permission to appeal and the time limits.

You may wish to get legal advice, as you might need to pay additional costs.

Question 11

Legislation and guidance

Accepted Answer

The procedural law governing applications and appeals to the First-tier Tribunal include the Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009.

The First-tier Tribunal has issued practice directions which give guidance on specific areas:

electronic bundles
oral evidence from abroad
witness summons and order to produce documents
allocation of cases to categories
alternative dispute resolution
delegation of functions to staff
document upload centre instructions

Question 12

Published decisions

Accepted Answer

Many decisions of the First-tier Tribunal are published, even if there was no hearing. You can find details of published decisions.

Examples of decisions that can be appealed to the First-tier Tribunal

Examples of decisions that can be appealed to the First-tier Tribunal (Tax Chamber) include decisions concerning:

income tax
corporation tax
capital gains tax
national insurance contributions
statutory payments
inheritance tax
petroleum revenue tax
student loans
stamp duty land tax
land transaction tax (in Wales)
tax collected under Pay as You Earn and the Construction Industry Scheme
value added tax
customs duty
aggregates levy
air passenger duty
climate change levy
insurance premium tax
landfill tax
landfill disposals tax (in Wales)
excise duties including for alcoholic liquor, hydrocarbon oils, bingo, gaming, general betting, lottery, pool betting, remote gaming and tobacco products
the Money Laundering Regulations 2007 and the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017
the Economic Crime Levy

Examples of applications and referrals

an application by a taxpayer asking the First-tier Tribunal to close an enquiry into a tax return that has been opened by HMRC, the WRU or the NCA
an application by a taxpayer asking the First-tier Tribunal to determine or apportion market value of an asset for the purposes of capital gains tax
an application by a taxpayer asking the First-tier Tribunal to decide if a restoration decision should be made despite the request for that decision being made late
an application by a taxpayer asking the First-tier Tribunal to decide if specified documents are privileged from disclosure
a referral by a taxpayer of a clearance application that has been made to HMRC
a referral by a partner of a partnership dispute concerning the allocation of profits or losses
a joint application (by a taxpayer and HMRC) for the First-tier Tribunal to decide a question arising out of an enquiry into a tax return
an application by HMRC for a notice requiring a taxpayer to provide information or documents, or for permission to inspect premises
an application by HMRC for certain penalties to be imposed on a taxpayer

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