CH192350 - 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 against a penalty point

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 has appeal and review rights against HMRC’s decision to award a penalty point. This does not apply to penalty points added as a result of moving between groups (change of filing frequency).

The Tribunal may affirm or cancel HMRC’s decision to award a penalty point.

Note: If a taxable person appeals against a financial penalty, the Tribunal may also affirm or cancel HMRC’s decision that the taxable person was liable to any of the penalty points which led to the financial penalty. This applies even if the time limit for appealing against the penalty point had expired before the appeal was made against the financial penalty. This does not apply if the decision that the taxable person was liable to that earlier point was already affirmed on an earlier appeal.

If the Tribunal cancels a financial penalty and a penalty point, see CH192370 for HMRC’s ability to award additional penalty points.

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

FA2021 SCH 24 para 22(a) & para 24 (1) & (3)