How do I appeal an HMRC penalty?

Question

Accepted Answer

Here is a structured answer on how to appeal an HMRC penalty:

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## How to Appeal an HMRC Penalty

### What the law says

**Right to appeal**
A person may appeal against:
- a decision of HMRC that a penalty is payable;
- a decision of HMRC as to the **amount** of a penalty payable; and
- (where relevant) a decision of HMRC not to suspend a penalty, or the conditions of suspension set by HMRC.

**How an appeal is treated**
An appeal against a penalty "shall be treated in the same way as an appeal against an assessment to the tax concerned (including by the application of any provision about bringing the appeal by notice to HMRC, about HMRC review of the decision or about determination of the appeal by the First-tier Tribunal or Upper Tribunal)." Crucially, you are **not required to pay the penalty before the appeal is determined**.

**Time limit**
Notice of appeal must generally be given **in writing within 30 days** after the date of the penalty notice or specified date.

**Tribunal powers on appeal**
- On an appeal against the *decision that a penalty is payable*, the tribunal may **affirm or cancel** HMRC's decision.
- On an appeal against the *amount* of the penalty, the tribunal may affirm HMRC's decision or **substitute another decision** that HMRC had power to make.

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### HMRC guidance / practice

**Step 1 – Request a statutory review (optional but recommended)**
HMRC must offer a statutory review of all appealable decisions. You have **30 days** from the penalty notice to either take up the offer of a review or appeal directly to the tribunal.

The review is carried out by an HMRC officer who was **not previously involved** in the matter. If you opt for a review, you can still appeal to the tribunal after the review has concluded.

If the review upholds the penalty, you will have a further **45 days** in which to appeal to the tribunal.

**Step 2 – Appeal to the First-tier Tribunal (Tax Chamber)**
If you do not request a review, or are unhappy with the review outcome, you can appeal directly to the First-tier Tribunal. You must do so **in writing within 30 days** of the penalty notice (or review conclusion), stating the **grounds of your appeal**.

**Key resources**
- HMRC publishes guidance on the process in **HMRC1 – "HMRC Revenue & Customs decisions – what to do if you disagree"**, which explains how to ask for a review and how to appeal to the independent tribunal.
- The tribunal can be reached at **gov.uk/tax-tribunal/appeal-to-tribunal** or by telephone on **0300 123 1024 (8:30am–5:00pm)**.
- Full procedural guidance is in HMRC's **Appeals, Reviews and Tribunals Guidance (ARTG)**.

**Alternative Dispute Resolution (ADR)**
ADR is available as an alternative to litigation at any stage where the parties have reached an impasse, though it is **not appropriate** for fixed penalties on the grounds of reasonable excuse.

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> ⚠️ **Key practical points:**
> - Always appeal **in writing** and within the **30-day deadline** — late appeals require the tribunal's permission and are not guaranteed.
> - You do **not** need to pay the penalty while your appeal is pending.
> - Attach a copy of HMRC's review conclusion letter when submitting your tribunal appeal.

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