Budget 2008 > Indirect tax > Tribunal Reform - HMRC’s approach to appeals 
 

Tribunal Reform - HMRC’s approach to appeals                               

Following consultation led by HM Revenue & Customs the Chancellor announced a new process by which taxpayers may appeal against decisions made by HMRC. The changes will come into effect at the same time as the new two tier tax tribunal system which is expected to commence in April 2009. Thereafter, the tax appeal process for all taxes will be administered by the first tier tax tribunal. HMRC will then be passing a great deal of the administration it presently undertakes to the new tribunal and it is therefore important that unnecessary disputes are avoided.

The new proposals will introduce a statutory entitlement for taxpayers to ask HMRC to undertake an internal review of a decision. HMRC will normally be required to complete such a review within 45 days. Taxpayers will retain the right to opt for a tribunal hearing either before such an internal review, or within 30 days of its conclusion. The taxpayer will have the opportunity to put their case to the person carrying out the review. On completion of a review by an independent officer, the taxpayer will be notified both of the decision, and the reasons for it.

HMRC are currently undertaking trials of the new arrangements in the Manchester area. One aspect being considered is whether the process may involve an element of external governance