CH193380 - Penalty reform - penalties for failure to pay VAT on time from 1 January 2023: appeals: appeals against the amount of a penalty

A person has appeal and review rights against the amount of the penalty we charge.

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”

If a person does not want a review, they may appeal to the tribunal. If they ask for a review, but are not satisfied with the conclusion, they have 30 days from the date of that conclusion which to appeal to the tribunal.

If the person disputes the amount of the liability to tax on which the penalty is based, an appeal against that liability may be heard by the tribunal at the same time.

The tribunal may affirm our decision or replace it with another decision that HMRC had the power to make.

Any appeal against the amount of penalty will mean the tribunal will also consider our decision about special reduction. For the scope of the tribunal`s role in considering special reduction, see CH175100

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

FA21/SCH26/PARA19(2)