A tax tribunal functions like a court, it hears both sides of an argument before making a ruling. Tax tribunals are independent entities and are not controlled by HMRC.
How do I start an appeal at the First-Tier Tax Tribunal?
You must submit the appeal using an online form. You will also need a scan or photo of your review conclusion letter (or the original closure notice if you did not have a review) and your reasons for your appeal, so the Judge can understand your side of the argument
If you lodge your appeal more than 30 days after the date on your review conclusion letter (or the closure notice if you do not accept the offer of a review), you will need to explain why your appeal is late and the Judge will decide whether to allow the late appeal.
Will I need to lodge any documents?
Yes, once you have submitted your appeal the Tribunal will write to you or your representative to set out the next steps, usually HMRC will have 60 days to provide their statement of case which will give the reasons why HMRC do not agree with you. You will then have 42 days to file a list of documents you feel are relevant to your case although, usually the Tribunal will issue directions to both parties before this date setting out when you and HMRC should provide a list of documents to the Tribunal and to each other. The other documents required are as follows:
Witness Statements
It is recommended that a taxpayer provide a witness statement setting out the facts of their appeal and attaching any evidence in support. Thus will assist the Tribunal in making findings of fact which support the taxpayers case and it will be difficult for HMRC to argue against those findings of fact.
Documents or Hearing Bundle
This is a bundle of all relevant correspondence, notices, decisions, witness statements and any other documents which will be relevant to the appeal. The bundles are prepared electronically and must meet the Tribunals guidelines for bundles.
Skeleton Arguments
This is the outline of the arguments a party wishes to make orally at the hearing and should refer to any case law or legislation which will be relied upon or referred to at the hearing.
Authorities Bundle
This is a bundle of all the case law, legislation and guidance referred to in the grounds of appeal, statement of case and the parties skeleton arguments.
What Happens at the Hearing?
The taxpayer and any other witnesses will be asked questions by their own representative (examination) which will help to establish the facts, HMRC and sometimes the Tribunal will also be able to question the taxpayer (cross-examination) and any witnesses. The Taxpayer’s representative will be given the opportunity to ask any additional questions to clarify any points raised during HMRC’s cross examination (re-examination). Depending on the nature of the appeal and the issues being discussed, HMRC may also present a witness and the taxpayer’s representative will have the opportunity to cross-examine them.
The taxpayer’s representative will present the arguments in favour of the appeal and HMRC will then present their own arguments in response to the taxpayer’s position.
Once both sides have presented their cases, the taxpayer’s representative will have the opportunity to summarise their case and make a final statement. In most cases the Judge will reserve judgment and the parties will need to wait for a written decision which can take anywhere from 1 to 6 months, sometimes longer.
What if I disagree with the decision?
You will have 56 days from the date of the First Tier Tribunal’s decision to request permission to appeal to the Upper Tribunal, your request will need to set out in writing the reasons you disagree with the decision. In practice appeals will usually be limited to an error of law.
Can I represent myself at the First Tier Tax Tribunal?
Yes, a taxpayer can lodge their own appeal and deal with the entire process themselves but, it is advisable to have a tax tribunal specialist handle your appeal. A specialist will ensure that your appeal is presented effectively to give you the best possible chance of the Tribunal finding in your favour.
Relatus are experienced in representing taxpayers at the First Tier Tax Tribunal, we will handle the appeal from start to finish and provide you with the professional guidance and support required to ensure you have the best prospect of success.
