If you disagree with an HMRC decision, such as in relation to the application of a penalty, and want to raise a dispute, you must submit your appeal in writing directly to HMRC. An appeal must be filed within 30 days of receiving HMRC's decision. Your appeal will then be considered by HMRC, who will either accept your dispute and change their decision, or they will stick with their initial decision.

Raising a VAT dispute

Your decision letter will explain how to file an appeal and by when you must do so. Typically, the deadline is 30 days from the date of the letter, not the date you receive it.

You will have two options:

1. Use the appeal form that came with your decision letter
2. Send a letter to HMRC (to the address on the original letter from them)

If you do not have a letter, you can contact the HMRC office responsible for your return.

In your appeal you must include the following:

• Your name or business name
• Your VAT registration number
• Your basis for disputing HMRC’s decision

You can also include what you think the correct figures are (if these are being disputed) and how you have calculated them.

Often, disputes arise when:

• A business files VAT returns incorrectly
• A business fails to address a VAT matter in a timely manner (for example, a late application to register for VAT)
• HMRC opposes the VAT liability of a transaction or a series of transactions

Such errors can be mitigated by discussing your VAT processes with experts, allowing your filing and accounting to meet the requirements and fulfil your VAT obligations correctly.

Entering a tax dispute with HMRC can be lengthy and complicated. As a business making taxable supplies, you must ensure that you understand your obligations, and recognise if you have been treated unfairly by HMRC. Communicating this can be difficult, but you can find out how the HMRC dispute and resolution process works here.

Can I email my VAT questions to HMRC?

If you want HMRC to contact you by email, you will first need to confirm in writing, either by letter or email that:

• You are aware of, and agree to, the risks associated with using email (including security breaches)
• That you are comfortable with financial information being provided by email
• Attachments may be used

Following the submission of your appeal

The caseworker who made the initial tax decision will be the one to reconsider your case and take your appeal into account.

If they do not change their mind, you will be given a review. This is when the decision is reviewed by someone from HMRC who was not involved in the initial decision.

You can accept the review offer or file an appeal to the tax tribunal.

You will have 30 days from the date of the review offer to accept it.