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Accountants Highlight Simplified Tax Appeal Procedure
Appealing against a late filing penalty on VAT or other taxes may be a worthwhile move, according to Bradford-based chartered accountancy firm Watson Buckle, after recent statistics revealed over half of such challenges have so far proved successful.
HM Revenue and Customs (HMRC) introduced a new Internal Review Procedure on April 1 2009, with the intention of providing an easier and more consistent approach to resolving disputes.
All disputes should now be handled by a trained review officer, who has not previously been involved in the case and should therefore be able to take a more objective view.
Between the inception of the new review procedure and September last year, almost 60 per cent of decisions were ultimately overturned, although HMRC has pointed out that surcharges for late returns, which form the majority of penalty notices, are issued automatically and would generally be withdrawn or reduced if there was a good reason for their late filing.
Watson Buckle tax partner John Kinsella said: “Whether the high number of overturned decisions is a good or a bad thing depends on your point of view – it shows the review procedure works, but it is alarming how many penalties seem to have been issued incorrectly in the first place.
“Either way, merely accepting a penalty is no longer the only option and anyone who thinks they have been punished unfairly should certainly look into whether it should be reviewed.”
For more information, contact Watson Buckle on 01274 516700 or visit www.watsonbuckle.co.uk
