Appeal against a penalty
You can appeal to HM Revenue and Customs (HMRC) against a penalty, for example for:
- an inaccurate return
- sending in your tax return late
- paying tax late
- failing to keep adequate records
How you appeal depends if the penalty is for either:
- indirect tax, for example VAT, Customs Duty or Excise Duty
- direct tax, for example Income Tax, Corporation Tax or Capital Gains Tax
Your penalty may be cancelled or amended if you have a reasonable excuse.
How to appeal against an indirect tax penalty
You’ll be offered a review by HMRC in your penalty decision letter.
You can either accept the offer of a review or appeal to the tax tribunal.
How to appeal against a direct tax penalty
You’ll need to ask HMRC to look at your case again and consider your appeal.
If HMRC sends you a penalty letter by post, use the appeal form that comes with it or follow the instructions on the letter.
For Self Assessment, PAYE, VAT and Corporation Tax, there are extra documents you can use or alternative ways to appeal.
If you’re appealing against a Self Assessment penalty
If you’ve been charged a penalty for not sending a tax return but you do not need to send one, you can get your penalty cancelled. Tell HMRC online you do not need to be self assessed or call the helpline.
Otherwise, to appeal you’ll need:
- the date the penalty was issued
- the date you filed your Self Assessment tax return
- details of your reasonable excuse for late filing
If you’re appealing against a £100 late filing penalty from tax year 2015 to 2016 onwards, you can appeal online or by post. You’ll need to set up a Government Gateway account if you do not have one to appeal online.
For other Self Assessment penalties, you need to appeal by post. Send a completed form SA370 or a letter explaining your appeal to HMRC Self Assessment.
HM Revenue and Customs
If you’re an employer appealing against a PAYE penalty
You can appeal online if you’re registered for HMRC’s PAYE for employers service. Once you’ve logged in, select ‘Appeal a penalty’. You’ll get an immediate acknowledgment when you submit your appeal.
If you filed a late VAT or Corporation Tax return
You can also use these specific forms for:
- filing a late VAT return if you had a reasonable excuse
- Corporation Tax if you filed late because of computer problems
If you do not have an appeal form
You can send a signed letter to HMRC instead. You must include a full explanation of why your return or payment was late, including dates.
Also include in your letter:
- your name
- your reference number - for example your Self Assessment Unique Taxpayer Reference (UTR) or VAT registration number
If you could not file or pay because of computer problems, you should include the following:
- the date you tried to file or pay online
- details of any system error message
Send your claim to the HMRC office related to your return.
You usually have 30 days from the date your penalty was issued to appeal.
If you miss this deadline you must explain the reason for the delay so that HMRC can decide if they’ll consider your appeal.
If you or your business was affected by coronavirus (COVID-19) and the penalty was dated before 1 October 2021, HMRC will give you an extra 3 months after the deadline to appeal. Send your appeal as soon as you can, and explain the delay is because of COVID-19.
Getting a review
If HMRC do not change the decision and you still disagree, you’ll be offered a review.