Disagree with a tax decision or penalty
Delay payment during appeals and reviews
You may be able to delay paying a tax bill or penalty if you’re in the process of:
- making an appeal to the tax tribunal
- making an appeal to HM Revenue and Customs (HMRC)
- getting a review of a tax decision or penalty
Once the appeal or review has been settled, you’ll need to pay whatever you owe unless the decision is cancelled.
You can be charged interest on the tax in dispute until it’s paid. You might also be charged a late payment penalty.
Direct tax
You can ask to delay paying part or all of the tax in dispute when you:
- appeal to HMRC against a tax decision
- get either a tax decision or penalty reviewed
You’ll have 30 days from starting the process to ask to delay payment.
Write to the office that sent you the decision and include:
- why you disagree
- what you think the correct amount is
- when you’ll pay it
HMRC will tell you in writing if they agree to you delaying payment.
Appealing a penalty
If you’ve appealed against a penalty, you will not have to pay until your appeal has been settled.
Indirect tax
If you’ve asked HMRC to review an indirect tax decision, for example VAT or Insurance Premium Tax, HMRC will not collect any disputed tax until the review has finished.
If you appeal to the tax tribunal, you’ll usually have to pay the tax before the tribunal will hear your appeal.
If paying the tax would cause you financial difficulty, you can ask HMRC not to collect it until the tax tribunal has made a decision.
This is known as a ‘hardship application’. You can make a hardship application by writing to:
HMRC
Solicitor’s Office and Legal Services
Hardship Team
Appeals and Reviews
S0987
Newcastle
NE98 1ZZ
You should include:
- details of the appeal, including the amount you owe
- the reasons why paying now would cause hardship
- the amount you’d like to pay later
Penalty
If you’ve asked for a review, or appealed to the tribunal about a penalty, HMRC will not ask you to pay it until your appeal has been settled.