ARTG3320 - Reviews and appeals for indirect taxes: Payment of tax pending the outcome: Following appeal to the tribunal

If the customer appeals to the tribunal, the tribunal may only hear the appeal if the disputed tax has been paid to HMRC, unless

• the customer provides acceptable security (excise and customs duties), or
• the customer applies for tax not to be paid because payment of it would cause them hardship and HMRC or a tribunal accept their application, see ARTG3330, (all indirect taxes)

Penalties, interest and surcharge do not have to be paid before an appeal can be heard by the tribunal, but any assessment of tax that triggered the penalty/interest/surcharge must be paid. Late payment interest and late payment penalties will continue to accrue until the customer makes payment in full.

Accepting an application for hardship does not change the due date for payment of the disputed tax under the legislation. If the customer is unable to pay the disputed tax, it may be appropriate for them to consider making an application for Time to Pay to prevent further accrual of late payment penalties (see CH193160)