If you’ve received a Notice of Requirement (NOR), you are within your rights to appeal to HMRC. You should do so within 30 days of receiving the letter and, if you would rather not do this in person, it’s fine for your accountant or other financial adviser to do so on your behalf.

Your Right to an Independent Review

Once you’ve informed HMRC of your objection, they will respond. If you still feel unhappy with the outcome, and that you have a reasonable objection, it’s your right to have the case reviewed again by a different officer from the one who originally made the decision.

Once the review process is underway, it must be completed within 45 days unless another time is outlined by HMRC. Once that time is up, you should expect to receive a letter informing you of the official outcome. You have a 30-day window from receiving this to push for an independent tax tribunal hearing if you remain unsatisfied.

How to appeal to the Tribunal

Run by independently appointed expert tax judges or panel members, a tax tribunal is administered by the HM Courts and Tribunal service, part of the Ministry of Justice. Applying to the Tribunal requires the downloading of a form here, to which you’ll need to attach a copy of your original Notice of Requirement. Once you’ve applied, they will either make a decision based on the information you sent or schedule a hearing if the situation is complex.

Appeal to a Tribunal Does not Prevent Prosecution

HMRC makes it clear that even though you may have appealed to an independent tribunal against the NOR, you could still be prosecuted if you continue to ‘make or receive taxable supplies’ without providing them with the NOR. It is likely that HMRC would wait for the tribunal’s decision before commencing prosecution, but they are not legally required to do so. For advice on a Notice of Requirement for a Security Bond call 08000 746 757.

Author: Mike Smith