Challenge an HMRC decision but what’s the chance of winning!

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Figures released by the Government found that those who ask the taxman to cancel a penalty are overwhelmingly successful – and those who ask it to change the amount of tax they owe are successful a third of the time.

Almost one in five taxpayers who take HMRC to a tribunal are successful – and there are concerns that a new system of fees might discourage many of these taxpayers from appealing.

So how should you challenge a tax bill and how much does it cost?

Asking for an HMRC internal review is free. HMRC should tell you how to do so when it tells you a penalty is being imposed.

Tribunal cases are currently free but fees of up to £2,000 to bring an appeal on your case are being introduced. This will be bad news for those wanting justice but without the necessary funds! Plus advisers fees have to be taken into account in this lengthy process

There is concern that these may discourage people to bring appeals against the Government, leading many people to end up paying the wrong amount of tax.

The Ministry of Justice could not give a date for their introduction but said the fees would be introduced ‘in due course’.

The cost will be £50 to bring a basic case, including the most simple cases which are dealt with using paperwork, or £200 to bring a standard or complex case to the first tier tribunal.

There would then be a hearing fee of £200 for a basic case, £500 for a standard case and £1,000 for a complex case. Appealing to the upper tribunal could cost up to £2,000.

So watch this space for the latest as its happens.

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