Disputes between taxpayers and HM Revenue and Customs (HMRC) are more common than many think — and when negotiations fail, the next step may involve formal legal proceedings. For most tax appeals in the UK, that means appearing before the First-tier Tribunal Tax .

The First-tier Tribunal (Tax Chamber) is part of the UK’s independent tribunal system. It hears appeals from individuals and businesses challenging a wide range of HMRC Investigations — from VAT investigations and self-assessment penalties to IR35 disputes, tax avoidance schemes, and business tax issues. It is designed to be accessible to the public, but navigating the process successfully still requires a clear understanding of how it works.

At The Taxcom, we’ve represented clients across a broad spectrum of tax disputes and appeals. We know how complex the rules can be, and how overwhelming it can feel for a taxpayer — especially one unfamiliar with legal proceedings — to go up against HMRC.

What Is the First-tier Tribunal Tax and What Does It Cover?

The First-tier Tribunal Tax is a specialist part of the UK judicial system that hears appeals against decisions made by HM Revenue and Customs (HMRC). It sits within the wider First-tier Tribunal structure, which handles different areas of administrative law, but the Tax Chamber is specifically responsible for tax disputes.

This tribunal operates independently of HMRC and is designed to offer a fair and impartial forum for individuals and businesses to challenge tax decisions. It is not part of the courts, but it has legal authority, and its decisions can significantly impact both financial outcomes and legal rights.

Legal Framework and Structure

The First-tier Tribunal Tax is governed by:

• The Tribunals, Courts and Enforcement Act 2007
• Specific procedure rules set out in the Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009
• Guidance from the Upper Tribunal and UK case law

It is part of the HM Courts and Tribunals Service (HMCTS) but operates separately from HMRC. This separation is crucial — it ensures that an HMRC decision is not reviewed by HMRC itself but by a legally neutral body.

What Kinds of Disputes Does It Handle?

The Tax Tribunal covers a wide range of tax-related appeals. These include, but are not limited to:

1. Income Tax and Self-Assessment Penalties

• Disputes over income tax returns
• Penalties for late filing or incorrect returns
• Enquiries and adjustments under self-assessment

2. VAT Assessments and Penalties

• HMRC decisions to deny VAT reclaims
• VAT registration disputes
• Incorrect VAT assessments or surcharges

3. PAYE and National Insurance Contributions (NICs)

• Disputes over employment status and employer obligations
• IR35 assessments (off-payroll working rules)

4. Tax Avoidance and Schemes

• Accelerated payment notices (APNs)
• Follower notices
• General Anti-Abuse Rule (GAAR) penalties

5. Corporation Tax and Business Tax Disputes

• Disallowance of business expenses
• Trading vs investment income disputes
• R&D tax credit disagreements

6. Customs and Excise Duties

• Import/export valuation disagreements
• Excise duty liabilities (e.g. alcohol, tobacco)

7. Stamp Duty Land Tax (SDLT)

• Disputes over reliefs or the application of SDLT rates
• Cases involving property reclassification or linked transactions

 

When Can You Appeal to the First-tier Tribunal Tax?

Before taking a dispute to the First-tier Tribunal Tax, it’s important to understand whether the decision you’ve received from HMRC is appealable, and what steps you must take beforehand. Not all disagreements with HMRC can be appealed immediately. Some must go through internal processes first, while others allow a direct appeal.

What Decisions Can Be Appealed?

You can appeal to the First-tier Tribunal Tax if HMRC has issued a formal notice of decision and you disagree with it. The decision must relate to a matter of law or tax assessment — not simply a complaint about HMRC service or delay. Common appealable decisions include:

• A tax assessment you believe is incorrect
• A penalty you feel is excessive or unjustified
• A decision to deny tax relief or repayment
• A classification or valuation of income, goods, or services
• An IR35 determination about employment status
• A refusal to accept your self-assessment return
• A notice to withdraw a tax registration (e.g. VAT)

The decision letter from HMRC will usually state whether you have the right to appeal and will outline the timeframe in which you must act.

Time Limits for Appealing

In most cases, you must submit your appeal to the First-tier Tribunal within 30 days of the date of the decision or review outcome.

Here’s a breakdown:

Type of Action	Deadline
Appeal following an HMRC decision	30 days from the date of the decision notice
Appeal after an HMRC internal review	30 days from the date of the review conclusion
Appeal after HMRC refuses a review	30 days from the date of refusal letter

Failing to meet these deadlines can result in your case being struck out before it even reaches a hearing. While the tribunal has discretion to accept late appeals, you must show good reason for the delay — such as illness, administrative error beyond your control, or exceptional personal circumstances.

How to Submit an Appeal to the First-tier Tribunal Tax

If you’ve decided to appeal HMRC’s decision, the next step is formally submitting your case to the First-tier Tribunal Tax (Tax Chamber). While the process is designed to be accessible — and does not always require legal representation — it is still a formal legal proceeding, and errors or omissions can delay your appeal or cause it to be rejected outright.

Understanding the correct procedure is crucial to getting your case heard efficiently.

Where to Start

All appeals to the First-tier Tribunal Tax must be submitted to the Tax Chamber of the First-tier Tribunal, which operates under the HM Courts and Tribunals Service (HMCTS).

You can submit your appeal:

• Online, via the official HMCTS website
• By post, using form T240 (for individuals and partnerships) or T245 (for companies and organisations)

Information You Must Provide

Your appeal submission must include the following:

• Your full name or the name of your business
• Your address and contact details
• Your HMRC reference number
• A clear description of the decision you’re appealing
• The date of the decision
• A short but specific explanation of why you disagree with HMRC
• A copy of the decision letter or notice
• Whether you’ve requested a review from HMRC, and the result
• Whether you want a hearing in person, a remote hearing, or a decision on the papers

You can also submit supporting evidence, though in most cases, detailed evidence is exchanged later in the process. Still, it helps to attach anything relevant that supports your initial case.

What Happens After You Submit

Once your appeal is submitted, the tribunal will:

1. Acknowledge receipt of your appeal and assign a case reference number.
2. Check that the appeal is valid, including whether it was submitted on time.
3. Serve a copy of your appeal to HMRC, who must respond with a statement of case.

This HMRC response typically includes:

• A summary of HMRC’s legal position
• Copies of relevant correspondence and internal notes
• A justification of the tax assessment or penalty

After this exchange, a tribunal case manager will issue directions for how the case will proceed, including deadlines for evidence disclosure, submission of witness statements, and setting a hearing date.

Representation and Costs

You are not required to have legal representation to appeal to the First-tier Tribunal Tax. However, many taxpayers choose to instruct a tax adviser, accountant, or solicitor — especially for complex or high-value cases.

Importantly, the tribunal follows the “no-costs” rule for most standard cases. This means that:

• You will not be required to pay HMRC’s legal costs if you lose
• HMRC will not be required to pay your costs if you win

For complex cases, the tribunal may allow cost recovery — but only if both parties agree in advance to opt into cost rules.

Can You Appeal Online?

Yes. HMCTS now provides a digital form via www.gov.uk/tax-tribunal where you can submit:

• Basic appeal information
• Uploaded supporting documents
• Requests for your preferred hearing type

Online appeals are faster and generate instant confirmation of receipt.

At The Taxcom, we assist both individuals and corporate clients with full tribunal representation and case preparation.