CH192340 - Penalty reform - penalties for failing to file VAT returns by the due date for periods from 1 January 2023: penalties for failing to make returns: appeals overview

NB: “These rules currently only apply to VAT for VAT periods starting on or after 1 January 2023. These rules will come into force for other tax regimes at a future date. You must check the date from which these rules apply for the tax or duty you are dealing with”

A taxable person can appeal against

• the award of a penalty point, with the exception of those point(s) added in respect of a change of filing frequency/group.
• the assessment of a financial penalty.

The penalty points and financial penalties are assessed on a taxable person and any appeal and review rights are restricted to that taxable person.

Appeals may be made, and reviews requested, by agents on behalf of their clients.

A taxable person does not have to pay the penalty before an appeal against the assessment of the financial penalty can be considered.

For procedural purposes, an appeal is treated in the same way as an appeal against an assessment to tax. This means that the underlying tax will dictate the procedure for reviews and making appeals.

For VAT, the person can request a review in response to the awarding of a penalty point and/or assessment of a financial penalty. Alternatively, a taxable person can appeal to the Tribunal either without having had a review, or after the review has concluded. They cannot appeal to the Tribunal during a review.

The Appeals, Reviews and Tribunals Guidance contains detailed guidance about the review and appeal process - ARTG3000 for indirect taxes.

FA2021 SCH 24 para 24
FA2021 SCH 27 paras 5 to 9, 25-28