VAT: How to challenge HMRC’s decision
HMRC has checked your client’s business records and concludes that the client owes further VAT and possibly a penalty. You disagree with HMRC, what can your client do now?
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Reallly this adds up to Appeal by return of post
HMRC posting is, shall we say, not reliable or timely.
Whilst you are correct, the FTT process allows an appeal as soon as HMRC are out of time, and so HMRC failure should not be a barrier to appeal.
Oddly, the last time I attended a "tribunal" (though it wasn't, it was the Commissioners back then, and not even the Special Commissioners) was during my Revenue days. Since then, I've only had one case where an appeal was notified to the FTT.
I was looking forward to my day in court on behalf of the client, but then HMRC caved. C'est la vie.
Last one I attended, new system,but not VAT, tribunal decided that client was allowed to keep his gross status.
Last one listed, HMRC refused all contact until the very last week
That one was for £60,000 of late filing fees on CIS, on one sole trader.
Search 'CIS Penalty avalanche'
Yet another HMRC IT failure.
In fairness to HMRC VAT, they will look to talk and listen and operate on an email basis
Not yet seen any unreasonableness
I requested a review of a VAT decision (rejection of application for MTD exemption) last September, within the 30 days. Despite two e-mails, a phone call and a letter, I have not received a response. Following the link in this article to the legislation, I now read that if HMRC does not give notice of its conclusion within 45 days, the review is to be treated as having upheld the original decision.
That leaves me not knowing if a review was ever undertaken, or if we just have a decision by default.
Whoops, forgot about that one
We had one client that they agreed, but then changed their mind and shut off access to the old system.
Are you sure HMRC hasn't just migrated your client to the new platform, which you have to access through your Agent Services Account, but you can then still file VAT returns the old way?
I understood that HMRC cannot actually sign up a taxpayer to MTD; the taxpayer or the agent must initiate the process. I had a non-MTD client for whom I received a message when trying to access their VAT account, that implied they had been signed up for MTD; whereas they had only been moved to the new platform.
Here is one thread of a few, discussing this: https://www.accountingweb.co.uk/any-answers/mtd-for-vat-4
Apologies if I've misunderstood and this isn't the issue.
I would never recommend submitting an appeal to the FTT by post -it should always be done online. I've been dealing with indirect tax disputes for over 15 years and the FTT e-mail system is quite efficient.
Your article does not mention ADR which is a useful negotiating tool, but for indirect tax cases an appeal must be submitted to the FTT before you can apply for ADR.
If you are involved in tax, of whatever flavour, I would recommend attending a Tax Tribunal Hearing. You will see how it operates first hand. And this is still possible now most hearings are conducted remotely. A helpful experience should one of your clients need to Appeal.