Dealing with tax matters in the UK can sometimes be a frustrating experience, especially when things don’t go as expected with HM Revenue and Customs (HMRC). Whether it’s a delay in processing your tax return, an unexpected penalty, or poor customer service, knowing how to lodge a formal complaint can help you resolve issues more effectively. This article provides a comprehensive guide on how to complain about HMRC, offering step-by-step advice on filing complaints, appealing tax decisions, and exploring alternative methods like mediation. We’ll also cover the benefits of hiring a tax professional to guide you through complex disputes, and how to escalate unresolved complaints to the Adjudicator’s Office or the Parliamentary and Health Service Ombudsman. If you’re a UK taxpayer facing difficulties with HMRC, this guide will help you navigate the process and ensure your complaint is handled properly and efficiently, maximizing your chances of a successful outcome.
Index
Why You Might Need to Complain About HMRC
Preparing to File a Complaint
Methods for Filing a Complaint
What Happens After You Submit a Complaint
External Review: Adjudicator’s Office and Ombudsman
How HMRC Handles Costs Incurred
What Types of Decisions Can Be Appealed
Step-by-Step Process for Filing an Appeal
HMRC’s Internal Review Process
Appealing to the Tax Tribunal
Using Alternative Dispute Resolution (ADR)
Final Considerations for Appealing
Alternative Dispute Resolution (ADR)
The Role of the Adjudicator’s Office
Parliamentary and Health Service Ombudsman
Negotiating with HMRC
The Benefits of Seeking Professional Advice
Why You May Need Professional Help
Types of Tax Professionals Who Can Help
How a Tax Accountant Can Assist with Complaints and Appeals
How to Choose the Right Tax Professional
Benefits of Hiring a Tax Professional Early
Why Involve a Tax Accountant in an HMRC Complaint
How a Tax Accountant Can Assist with Different Types of HMRC Complaints
Practical Steps a Tax Accountant Will Take
How to Find a Qualified Tax Accountant
Understanding the Basics of How to Complain About HMRC
HM Revenue and Customs (HMRC) is the UK’s tax authority responsible for collecting taxes, enforcing tax laws, and administering public services like child benefits and tax credits. Like any large organization, there are times when interactions with HMRC may not go as smoothly as expected, leading to complaints. Knowing how to properly complain and understanding the processes available can make the experience less frustrating and more effective.
Why You Might Need to Complain About HMRC
There are several reasons why someone might feel the need to complain about HMRC. Some common reasons include:
Poor service: This could involve difficulties in contacting HMRC, a lack of response to queries, or an unhelpful attitude from a staff member.
Unreasonable delays: If HMRC takes too long to process your tax return, VAT refund, or other issues, it can cause significant frustration.
Errors or mistakes: Miscalculations in tax bills, incorrect decisions regarding benefits, or mistakes made during communication can all lead to complaints.
Lack of clarity: HMRC’s communications may sometimes be difficult to understand, leading to confusion and a feeling of poor service.
It's important to remember that complaints about HMRC should be based on service-related issues, such as the ones listed above. If you disagree with a tax decision, there is a separate appeals process, which we will cover later in this article.
Before Filing a Complaint
Before filing a complaint, it is essential to prepare all relevant information to ensure that your issue is handled as quickly and smoothly as possible. Gathering the right information is key to ensuring that your complaint is processed without unnecessary delays. Here’s what you should do before making a complaint:
Identify the problem clearly: Be specific about the issue you are complaining about, whether it's poor customer service, errors in tax calculations, or delays in receiving responses. This clarity will help HMRC understand your issue better and provide a solution faster.
Document the details: Collect all relevant documentation and information that relates to your complaint. This might include tax returns, correspondence from HMRC, or other financial records. The more evidence you can provide, the stronger your case will be.
Decide how you want the complaint resolved: Before contacting HMRC, think about how you want them to resolve your complaint. Do you want an apology, a refund for extra costs incurred due to their delays, or a formal review of their actions?
Make sure your tax payments are up to date: Even if you are in the process of filing a complaint, you should ensure that you continue paying any taxes or penalties due. HMRC can impose additional interest or penalties if you stop making payments while your complaint is being resolved. If you are in a financial dispute, it’s crucial to remain compliant during the complaint process.
The Different Ways to Complain to HMRC
There are multiple ways to lodge a complaint with HMRC, depending on the nature of your complaint and how you wish to proceed:
Online:
The fastest and most efficient way to complain is through HMRC’s online complaint form. Individuals, businesses, and agents (acting on behalf of clients) can access this form via the HMRC website. To submit a complaint, you'll need to log in using your Government Gateway credentials. If you do not have a Government Gateway user ID, you can create one during the process. When making a complaint online, you will need to provide your National Insurance number, VAT registration number, or Unique Taxpayer Reference (UTR), depending on the type of complaint.
By Phone:
If you prefer to speak to someone directly, you can call HMRC’s customer service helpline. Before calling, ensure you have your relevant taxpayer information ready, such as your National Insurance number or UTR, and prepare to explain your issue in detail.
If you have a complaint about HMRC's service, here's how to get in touch for different types of issues:
Income Tax
For complaints related to Income Tax, call:
Telephone: 0300 200 3300
Textphone: 0300 200 3319
Fax: +44 135 535 9022
Opening Hours: Monday to Friday: 8am to 6pmClosed on weekends and bank holidays.
Tax Credits
For complaints related to tax credits, call:
Telephone: 0345 300 3900
Opening Hours: Monday to Friday: 8am to 6pmClosed on weekends and bank holidays.
Self Assessment
For complaints related to Self Assessment, call:
Telephone: 0300 200 3310
Textphone: 0300 200 3319
Outside UK: +44 161 931 9070
Opening Hours: Monday to Friday: 8am to 6pmClosed on weekends and bank holidays.
You can also find information in your business tax account.
National Insurance
For complaints related to National Insurance, call:
Telephone: 0300 200 3500
Textphone: 0300 200 3519
Outside UK: +44 191 203 7010
Opening Hours: Monday to Friday: 8am to 6pmClosed on weekends and bank holidays.
Child Benefit
For complaints related to Child Benefit, call:
Telephone: 0300 200 3100
Opening Hours: Monday to Friday: 8am to 6pmClosed on weekends and bank holidays.
VAT, Customs, International Trade, and Excise
For complaints about VAT, customs, international trade, or excise, call:
Telephone: 0300 200 3700
Textphone: 0300 200 3719
Outside UK: +44 2920 501 261
Opening Hours: Monday to Friday: 8am to 6pmClosed on weekends and bank holidays.
You can also find information in your business tax account.
Employers
For complaints related to employer support, call:
Telephone: 0300 200 3200
Textphone: 0300 200 3212
Fax: 03000 523 030
Opening Hours: Monday to Friday: 8am to 6pmClosed on weekends and bank holidays.
By Post:
If online or phone complaints aren’t suitable, you can send a complaint letter to HMRC by post. Include all relevant details such as your taxpayer ID, a summary of your complaint, and how you would like the issue resolved.
If you have a complaint related to Income Tax or Self Assessment, you can write to HMRC at the following address:
PAYE and Self Assessment Complaints
HM Revenue and Customs
BX9 1AB
United Kingdom
For complaints about National Insurance or issues as an employer, send your letter to:
NIC and Employer Complaints
HM Revenue and Customs
BX9 1AA
United Kingdom
If your complaint is about debt management, contact HMRC at this address:
Debt Management Complaints
HM Revenue and Customs
BX9 1JT
United Kingdom
For complaints related to compliance checks or HMRC enquiries, you can write to:
Customer Compliance Complaints
HM Revenue and Customs
BX9 2A
BUnited Kingdom
What Happens After You Complain?
Once you’ve submitted your complaint, HMRC will start the process of reviewing it. The complaint review process is broken into tiers:
First Tier Review: Once HMRC receives your complaint, it will be assigned to a member of their team who will investigate the issue. HMRC aims to handle complaints promptly, and you will be notified with the name and contact details of the person managing your case. HMRC will also inform you of the next steps and give an estimated timeline for a resolution. After the review, HMRC will notify you of their decision.
Second Tier Review: If you are unhappy with the result of the first-tier review, you can request a second-tier review. This review will be conducted by a different team member within HMRC to ensure a fair reassessment of your complaint. The second-tier review will typically be more thorough than the first, especially if the original decision is contested.
External Review: The Adjudicator’s Office
If you remain dissatisfied after both the first and second-tier reviews, you have the option to escalate your complaint to the Adjudicator’s Office. The Adjudicator’s Office is an independent body that investigates complaints about HMRC’s service. Their role is to ensure fairness and that HMRC has followed its own procedures correctly.
To escalate your complaint to the Adjudicator’s Office, HMRC must have completed both of its internal review processes. The Adjudicator will review your case and give an independent opinion. If they find HMRC has handled your complaint poorly, they can recommend solutions, including refunds for professional fees incurred, postage, or phone costs.
Parliamentary and Health Service Ombudsman
If the Adjudicator’s decision doesn’t resolve the issue to your satisfaction, the final step is to involve the Parliamentary and Health Service Ombudsman. This can be done through your Member of Parliament (MP). The Ombudsman’s role is to provide an independent review of HMRC’s handling of your complaint and propose a resolution.
How HMRC Handles Costs Incurred
During the complaints process, HMRC may agree to cover reasonable costs you’ve incurred as a direct result of their delays or mistakes. These costs could include:
Postage: If you’ve had to send physical documents due to HMRC errors, they may refund your postage fees.
Phone Charges: If you’ve had to make frequent calls to HMRC to resolve the issue, they may reimburse these costs.
Professional Fees: If you had to hire an accountant or tax professional to resolve the problem, HMRC may consider refunding these fees, but only if they are directly related to their error or delay.
Make sure to keep receipts and detailed records of these costs to support your claim for reimbursement.
Audio Summary of the Above Part
Appealing Against Tax Decisions Made by HMRC
While complaints about HMRC’s service are handled through a specific process, appealing against a tax decision is a different matter altogether. Appealing refers to situations where you disagree with a specific tax decision, penalty, or assessment issued by HMRC. The process of filing an appeal is more formal and involves specific steps that must be followed for a successful outcome. In this part of the article, we’ll cover the steps for appealing a tax decision, the types of decisions you can appeal, and the different stages of the appeal process.
What Can You Appeal?
Not all decisions made by HMRC are open to appeal, but several types of tax decisions are. These include:
Tax Assessments: If HMRC calculates that you owe more tax than you believe is correct.
Penalties: This could involve penalties for late tax returns, inaccurate tax returns, or failure to make payments on time.
VAT Decisions: VAT disputes can occur if you disagree with the amount of VAT HMRC says you owe or decisions about VAT refunds.
Customs or Excise Duty: If you are a business involved in importing or exporting goods and disagree with the customs duties imposed by HMRC.
Tax Credits or Benefits: Appeals can also be made regarding decisions related to tax credits or other benefits you believe have been miscalculated or unfairly reduced.
It is important to note that disagreements over general taxation laws or policies cannot be appealed. The appeal process is only for specific decisions that impact your tax obligations or benefits.
Step-by-Step Process for Filing an Appeal
Check Your Decision Letter
When HMRC makes a decision about your taxes, they will send you a letter outlining the decision and the amount you owe or the penalty you have received. This letter is crucial because it will detail whether you have the right to appeal the decision, how long you have to do so, and the next steps for filing an appeal. Typically, you have 30 days from the date of the decision to file your appeal. Failing to do so within this timeframe may result in the appeal being dismissed.
Submit Your Appeal
To submit an appeal, you will need to provide HMRC with details about why you believe the decision is wrong. Appeals can usually be filed:
Online: For many types of tax decisions, HMRC provides an online form to submit your appeal.
By Post: You can also send your appeal in writing to HMRC, addressing it to the relevant department listed on your decision letter. Make sure to include all necessary details, such as your taxpayer reference, National Insurance number, and the specific reasons why you disagree with the decision.
For VAT, tax credits, or customs decisions, HMRC may provide different procedures and forms, so be sure to follow the instructions provided in your decision letter carefully.
Explain Why You Disagree
When you submit an appeal, you will need to explain in detail why you believe HMRC’s decision is incorrect. It is important to be clear, precise, and provide supporting evidence where possible. For instance, if you are appealing against a tax assessment, you might include documentation such as previous tax returns, accounting records, or bank statements that support your claim.
Your appeal must be based on factual errors or legal misinterpretations rather than personal opinions about the fairness of tax laws.
Wait for HMRC’s Response
Once your appeal is submitted, HMRC will review the information and respond. They may decide to:
Change their decision: HMRC might agree with your argument and amend their original decision accordingly. This is the best-case scenario, and the issue will be resolved at this stage.
Reject your appeal: HMRC may decide that their original decision was correct, and they will inform you of this in writing. At this point, you may need to escalate the matter further, which we will explore next.
HMRC’s Internal Review Process
If HMRC rejects your initial appeal, you can request an internal review of their decision. This is a more formal process, in which a different officer within HMRC will review the original decision to ensure that all procedures were followed correctly, and that the decision was based on the right information.
The internal review process usually takes 45 days, and during this time, you may be asked to provide additional information or clarification about your case. After the review, HMRC will inform you of the outcome. If the review results in a change of decision, the matter will be resolved, and you’ll be notified of any changes to your tax bill, penalties, or credits. However, if HMRC maintains their original decision, you may need to take the next step.
Appealing to the Tax Tribunal
If you are still dissatisfied after HMRC’s internal review, you have the right to appeal to an independent body called the Tax Tribunal. The Tax Tribunal is part of the UK judicial system and deals specifically with tax disputes between HMRC and taxpayers.
The Tax Tribunal operates in two stages:
First-Tier Tribunal: This is where most tax appeals are heard initially. It involves presenting your case to a panel of judges who will review the facts and issue a ruling.
Upper Tribunal: If you disagree with the decision made by the First-Tier Tribunal, you can appeal to the Upper Tribunal. However, to take your appeal to the Upper Tribunal, you must have valid legal grounds, such as an error in how the law was applied.
The Process of Appealing to the Tax Tribunal
To appeal to the Tax Tribunal, you will need to submit a Notice of Appeal form, which can be found on the government’s website. In the appeal, you will be required to:
Outline the reasons for your appeal.
Provide evidence to support your case.
Pay a fee, which varies depending on the type of appeal and the amount of tax in dispute.
At the First-Tier Tribunal, your case will be heard by one or more judges. You will have the opportunity to present your case and call witnesses if necessary. HMRC will also present their side of the case, and the judges will make a ruling based on the evidence provided.
The outcome of the First-Tier Tribunal can be either in your favor, in which case HMRC may need to amend their decision, or in favor of HMRC, meaning you will be required to comply with their original decision.
Using Alternative Dispute Resolution (ADR)
In some cases, taxpayers and HMRC can resolve disputes using Alternative Dispute Resolution (ADR). This process involves mediation or facilitation by an independent mediator who helps both sides come to an agreement without going to court. ADR can be a faster and less expensive option compared to taking a case to the Tax Tribunal. However, ADR is only suitable for specific types of disputes, such as those involving factual disagreements rather than legal interpretations.
If you are interested in ADR, you can request this through HMRC, who will assess whether it is an appropriate method for resolving your case.
Final Considerations When Appealing
When appealing against a tax decision, it’s important to follow the correct procedures, provide accurate and detailed information, and remain within the required timeframes. Failure to submit an appeal on time or providing incomplete information could result in your appeal being dismissed without a full review.
It’s also worth noting that tax disputes can be complex, and seeking professional advice from a tax expert or accountant can be beneficial. They can guide you through the process, help you prepare the necessary documentation, and increase your chances of success in appealing a tax decision.
Audio Summary of the Above Part
Resolving Complex Disputes with HMRC Through Alternative Methods
While most complaints and appeals are resolved through the standard channels outlined in the previous sections, there are situations where the standard process may not be effective, or where the dispute is particularly complex. In these cases, it is essential to explore other methods of resolving the dispute with HMRC. These alternative methods can save time, reduce costs, and lead to a more satisfactory resolution for both parties.
In this part of the article, we will discuss several alternative approaches to resolving disputes with HMRC, including:
Alternative Dispute Resolution (ADR)
The Role of the Adjudicator’s Office
Parliamentary and Health Service Ombudsman
Negotiating with HMRC
The Benefits of Seeking Professional Advice
1. Alternative Dispute Resolution (ADR)
Alternative Dispute Resolution (ADR) is a method that allows you to resolve disputes with HMRC without going through the formal court process or lengthy internal reviews. It is a voluntary process, meaning both parties—HMRC and the taxpayer—must agree to use ADR. The process is facilitated by an independent mediator who helps both sides come to a mutual agreement. ADR is particularly useful in cases where there is a factual disagreement, such as how much tax is owed based on specific transactions or the classification of expenses.
Types of ADR
There are two main types of ADR processes that can be used with HMRC:
Mediation: In mediation, an independent mediator helps both sides communicate more effectively and reach a compromise. The mediator does not make decisions or force an outcome, but instead facilitates dialogue and helps both parties to find common ground.
Facilitation: Facilitation is a less formal process where an independent facilitator helps both parties better understand each other’s positions and move toward a resolution. It is often used for disputes that don’t necessarily require a formal legal decision but where communication has broken down.
ADR can be quicker and less stressful than going through HMRC’s internal review processes or appealing to a tax tribunal. However, it is not suitable for all cases. For example, ADR is generally not used for disputes about legal interpretation, where the issue is about how the law should be applied rather than the facts of the case.
When to Consider ADR
You should consider ADR if:
There is a factual disagreement with HMRC that could benefit from independent facilitation.
You believe that better communication or a third-party mediator could help resolve the issue more efficiently.
You want to avoid the formal appeals process, which could be lengthy and costly.
If you are interested in using ADR, you can apply through HMRC’s ADR team, who will assess whether your case is suitable for the process. It is important to note that using ADR does not affect your right to appeal to the tax tribunal later if ADR does not result in a satisfactory resolution.
2. The Role of the Adjudicator’s Office
If ADR does not work, or if you feel your complaint was not adequately resolved through HMRC’s internal review process, you can escalate the matter to the Adjudicator’s Office. The Adjudicator is an independent and impartial authority that investigates complaints about HMRC’s handling of tax-related matters. The Adjudicator cannot change tax laws, but they can investigate whether HMRC followed its own procedures correctly and treated you fairly.
What the Adjudicator’s Office Can Do
Investigate Complaints: The Adjudicator’s Office investigates complaints about how HMRC has handled your case, particularly in terms of fairness, delays, and errors.
Recommend Remedies: If the Adjudicator finds that HMRC did not act correctly, they can recommend remedies, including compensation for financial loss, inconvenience, or distress caused by HMRC’s actions.
Independent Review: The Adjudicator’s Office offers an independent review that is not connected to HMRC. This ensures that the outcome is impartial.
You can only approach the Adjudicator’s Office once you have gone through HMRC’s internal review process. The Adjudicator will examine your complaint in detail, looking at all the evidence you provide, as well as HMRC’s records. They will then issue a report outlining their findings and recommendations.
How to Contact the Adjudicator
To contact the Adjudicator’s Office, you will need to:
Write a letter outlining your complaint.
Provide copies of all relevant correspondence with HMRC, including the outcome of their internal reviews.
Include evidence supporting your claim, such as receipts for any additional costs incurred due to HMRC’s actions.
The Adjudicator will usually respond within a few weeks to confirm whether they will take on your case. If they accept the case, they will carry out a thorough investigation before issuing their decision.
3. Parliamentary and Health Service Ombudsman
If you are not satisfied with the Adjudicator’s decision, the next step is to escalate your complaint to the Parliamentary and Health Service Ombudsman (PHSO). The Ombudsman investigates complaints referred by MPs on behalf of individuals, ensuring that government departments, including HMRC, have acted fairly and in line with their obligations.
When to Approach the Ombudsman
You should approach the Ombudsman if:
The Adjudicator’s decision did not resolve your complaint to your satisfaction.
You believe that HMRC has acted unfairly, unreasonably, or has failed in its duty of care.
You have exhausted all other routes of complaint, including ADR and the Adjudicator’s Office.
To escalate your complaint to the Ombudsman, you must contact your local Member of Parliament (MP) and ask them to refer your case. The Ombudsman will then investigate the complaint and provide recommendations on how to resolve the issue. Like the Adjudicator, the Ombudsman cannot change tax laws but can hold HMRC accountable for procedural errors or unfair treatment.
4. Negotiating with HMRC
Sometimes, it is possible to resolve disputes with HMRC through direct negotiation. This can be an informal way to reach an agreement, especially if the issue involves a grey area in tax law or complex financial arrangements. If you have the support of a tax professional, they may be able to negotiate on your behalf, explaining your position clearly and helping HMRC understand why the original decision should be reconsidered.
Tips for Successful Negotiation
Be clear and concise: Present your case logically and with supporting evidence. Make it easy for HMRC to understand your position.
Remain professional: Keep your communication polite and professional, even if you are frustrated by HMRC’s actions.
Know your limits: Be aware of the areas where you may be willing to compromise and those where you cannot. Flexibility can help in reaching a solution, but you must also be firm about your rights.
Use a tax expert: If you feel overwhelmed by the complexity of the negotiations, it may be helpful to involve a tax accountant or solicitor with expertise in tax disputes.
5. The Benefits of Seeking Professional Advice
When dealing with complex disputes or navigating the various appeal processes, seeking advice from a tax accountant or professional adviser can make a significant difference. Tax professionals have experience dealing with HMRC and can provide valuable insight into how best to approach your case.
Key Benefits of Using a Tax Professional
Knowledge of Tax Law: Tax experts have a deep understanding of tax legislation and know how to interpret the laws in ways that may benefit your case.
Experience with HMRC: They are often familiar with HMRC’s processes, which can help in preparing strong cases and avoiding common pitfalls.
Strategic Advice: A tax accountant can help you develop a strategy for dealing with your dispute, whether it involves mediation, direct negotiation, or formal appeals.
Saving Time and Stress: Tax disputes can be time-consuming and stressful. By hiring a professional, you can focus on other aspects of your life while they handle the complicated parts of the process.
When Should You Hire a Professional?
You should strongly consider hiring a tax professional if:
Your case involves large sums of money or complex tax issues.
You feel uncertain about how to navigate the complaint or appeal process.
You want to maximize your chances of a successful outcome without the added stress of handling the dispute on your own.
Audio Summary of the Above Part
How to Escalate Complaints and Appeals When You Need Professional Help
As your dispute with HMRC progresses, it may become clear that professional help is essential for achieving a satisfactory outcome. While it’s possible to handle many complaints and appeals yourself, engaging a tax professional can offer significant advantages, especially when the dispute involves complex tax issues, large sums of money, or legal nuances. In this section, we’ll explore in detail how a tax professional, such as an accountant or solicitor, can assist in escalating complaints and appeals, making your journey through the tax dispute process more manageable and efficient.
Why You May Need Professional Help
HMRC's procedures for handling complaints and appeals are designed to be accessible to the general public, but the tax system is complex. There are several key reasons why you might find it beneficial to hire a tax professional:
Complexity of Tax Law: Tax laws in the UK are extensive and can be difficult to interpret without specialized knowledge. A tax professional has the expertise to navigate these laws and ensure that your complaint or appeal is framed in a way that aligns with current legislation.
High Stakes: If your tax dispute involves significant amounts of money, it is often worth hiring an expert to ensure that your case is presented as strongly as possible. Even a small error or misunderstanding could result in a large financial penalty, so professional guidance can make a huge difference in the outcome.
Time and Stress: Managing a tax dispute can be stressful and time-consuming, especially if you are unfamiliar with HMRC’s processes. A tax professional can handle the administrative burden, allowing you to focus on other important areas of your life or business.
Challenging HMRC Decisions: If your dispute progresses beyond an initial complaint and moves into formal appeals, the complexity increases. A tax professional can help you understand the implications of HMRC’s decisions and ensure that all legal procedures are followed correctly during the appeal process.
Types of Tax Professionals Who Can Help
There are different types of professionals who specialize in tax disputes, each offering their own expertise and services:
Tax Accountants: A tax accountant can be invaluable when dealing with HMRC disputes. They can help you prepare all the necessary documentation, ensure your tax returns are accurate, and provide professional representation in negotiations with HMRC. Tax accountants are particularly useful for disputes involving income tax, VAT, corporation tax, and tax credits.
Tax Solicitors: If your tax dispute becomes a legal matter or involves significant financial stakes, a tax solicitor may be the right choice. Tax solicitors can represent you in court, if necessary, and handle complex legal arguments that may arise during your dispute. They are also equipped to advise on matters that require a deeper understanding of tax law.
Chartered Tax Advisers (CTA): Chartered Tax Advisers have completed specialized training and are recognized as experts in tax law and practice. They often work with both businesses and individuals, offering tailored advice on handling tax disputes and providing representation during appeals or tribunal hearings.
Specialist Tax Consultants: Some tax professionals focus exclusively on certain areas of tax, such as VAT or international taxation. If your dispute involves a niche area of tax law, a specialist consultant may be able to offer the in-depth expertise you need.
How a Tax Accountant Can Help With Complaints and Appeals
A tax accountant’s primary role is to ensure that your financial dealings comply with UK tax laws while minimizing your tax liabilities. However, their expertise extends far beyond basic tax filing and can be invaluable when it comes to dealing with disputes with HMRC. Here’s how a tax accountant can assist at different stages of the complaint and appeal process:
1. Preparing a Strong Case
One of the most important things a tax accountant can do is help you build a solid case from the start. They will:
Review your financial records: A tax accountant will go through your tax returns, invoices, receipts, and any other relevant documentation to ensure that your complaint or appeal is based on accurate and complete information.
Identify errors or discrepancies: If HMRC’s calculations are wrong or if there are mistakes in your tax records, a tax accountant will identify these issues and present the correct figures.
Prepare supporting evidence: The success of your complaint or appeal often depends on the evidence you provide. A tax accountant can help gather and present this evidence in a clear, organized manner.
2. Communicating with HMRC
Tax accountants are experienced in dealing with HMRC on behalf of clients. They understand the language and processes used by HMRC and can ensure that your case is presented clearly and professionally. A tax accountant can:
Liaise directly with HMRC: Having a professional communicate with HMRC on your behalf can ensure that nothing is misunderstood or overlooked. This can also speed up the process, as tax accountants know how to navigate HMRC’s systems effectively.
Draft formal letters and appeals: A tax accountant can draft formal letters of complaint or appeal that present your case in the best possible light. They will ensure that your communications are compliant with HMRC’s requirements, preventing delays caused by incorrect or incomplete submissions.
3. Representing You in Negotiations
If your dispute involves negotiation with HMRC, such as settling a tax debt or agreeing on a revised tax bill, a tax accountant can represent you. They are skilled negotiators who can:
Advocate on your behalf: Your tax accountant can argue your case with HMRC, ensuring that your interests are protected and that you are not pressured into accepting an unfavorable outcome.
Propose compromises: If a compromise is needed to resolve the dispute, a tax accountant can suggest solutions that work for both you and HMRC, helping to avoid drawn-out appeals or tribunal hearings.
4. Assisting with Appeals
If your complaint is not resolved to your satisfaction and you need to appeal, a tax accountant can guide you through the entire appeal process. They can:
Prepare your appeal submission: A tax accountant can ensure that your appeal submission is complete and complies with HMRC’s guidelines. They will also help gather and organize the evidence needed to support your appeal.
Represent you at the Tax Tribunal: In some cases, a tax accountant can represent you at the First-Tier Tribunal, presenting your case to the judges and handling all aspects of the appeal process.
How to Choose the Right Tax Professional
Choosing the right tax professional to assist with your complaint or appeal is crucial. Here are some factors to consider when making your choice:
Qualifications: Ensure that the professional you choose is properly qualified. Tax accountants should be members of recognized bodies such as the Institute of Chartered Accountants in England and Wales (ICAEW) or the Association of Taxation Technicians (ATT). For more complex disputes, look for Chartered Tax Advisers (CTAs) or tax solicitors who are regulated by the Law Society.
Experience: It’s important to choose a professional who has experience handling disputes with HMRC. Ask about their track record in dealing with complaints, appeals, and tribunal cases.
Specialization: If your dispute involves a specific area of tax, such as VAT or customs duties, consider hiring a specialist who has in-depth knowledge of that particular field.
Cost: Tax professionals charge different rates depending on their expertise and the complexity of the case. Before hiring a tax professional, discuss their fees upfront and ensure that you are comfortable with the costs involved.
Benefits of Hiring a Tax Professional Early
While it’s possible to handle HMRC disputes on your own, hiring a tax professional early in the process can have several key benefits:
Prevention: A tax professional can help prevent disputes from arising in the first place by ensuring that your tax returns are accurate and compliant with the law. They can also offer advice on how to avoid common pitfalls that lead to disputes with HMRC.
Speed: Tax professionals know how to navigate HMRC’s systems efficiently. This can result in quicker resolutions, as they are familiar with the procedures and requirements that often cause delays when dealing with HMRC.
Accuracy: Tax professionals can ensure that all documentation is accurate and complete, reducing the chances of errors that could negatively impact the outcome of your complaint or appeal.
Peace of Mind: Dealing with HMRC can be stressful, especially if you are unfamiliar with the tax system. Hiring a tax professional can give you peace of mind, knowing that an expert is handling your case and advocating for your interests.
When Should You Involve a Tax Professional?
You should consider involving a tax professional if:
Your dispute with HMRC is particularly complex or involves a large sum of money.
You are struggling to understand the tax laws relevant to your case.
You have reached the appeal stage and need help presenting your case to HMRC or the Tax Tribunal.
You are feeling overwhelmed by the dispute and need professional support to navigate the process.
Audio Summary of the Above Part
How a Tax Accountant Can Help You Complain About HMRC
In the earlier parts of this article, we’ve explored the general process for complaining about HMRC and appealing against tax decisions, as well as the various stages involved. In this final section, we will focus specifically on how a tax accountant can assist you in the process of making a complaint against HMRC, helping to resolve the dispute in a professional and efficient manner.
Tax accountants possess the expertise and knowledge required to handle complex tax-related matters, including issues with HMRC. They can guide you through every step of the complaint process, ensuring that you understand your rights, obligations, and the best course of action. Whether your complaint is about poor customer service, delays, or mistakes in tax calculations, a tax accountant can be instrumental in getting the issue resolved quickly and effectively.
Why Involve a Tax Accountant in an HMRC Complaint?
Although HMRC provides various avenues for taxpayers to lodge complaints, navigating the process can be challenging, particularly if you are unfamiliar with tax laws or HMRC procedures. Here’s how a tax accountant can provide invaluable support:
Expert Knowledge of Tax Law: Tax accountants have a deep understanding of UK tax laws, regulations, and HMRC’s internal processes. They can identify when HMRC has made a mistake or has failed to follow proper procedures. This knowledge ensures that your complaint is based on sound legal grounds, increasing the likelihood of a successful outcome.
Clarity and Accuracy: When submitting a complaint, it is crucial to present clear, concise, and accurate information. A tax accountant can help you frame your complaint effectively, highlighting the key points and avoiding unnecessary complications that might delay the process. They can also ensure that all supporting documents, such as tax returns or correspondence with HMRC, are properly organized and submitted with your complaint.
Minimizing Delays: Complaints to HMRC can sometimes take time to resolve. A tax accountant can help minimize delays by ensuring that all required information is provided upfront and that your case is presented in a way that encourages swift resolution. They can also follow up with HMRC on your behalf, keeping the process moving forward.
Strategic Advice: In some cases, it may be beneficial to negotiate with HMRC or pursue alternative dispute resolution methods rather than filing a formal complaint. A tax accountant can advise you on the best approach for your specific situation, considering factors such as the amount of money involved, the complexity of the issue, and your relationship with HMRC.
How a Tax Accountant Can Assist with Different Types of HMRC Complaints
Tax accountants can assist with a wide range of complaints related to HMRC’s services. Here are some common examples:
1. Complaints About Poor Customer Service
Poor customer service is one of the most common reasons for complaints against HMRC. Whether it’s unhelpful staff, long wait times, or unprofessional communication, these issues can lead to frustration and confusion for taxpayers.
A tax accountant can help in the following ways:
Drafting a formal complaint: A tax accountant will help you prepare a formal complaint letter, detailing the poor service you experienced. They will ensure that your complaint is written in a professional manner and addresses the key issues.
Escalating the complaint: If the initial complaint is not resolved to your satisfaction, a tax accountant can help you escalate the matter through HMRC’s internal review process or to external bodies such as the Adjudicator’s Office or the Parliamentary and Health Service Ombudsman.
2. Complaints About Delays
Delays in processing tax returns, VAT refunds, or resolving disputes can cause significant financial stress, especially for businesses that rely on timely payments from HMRC.
Here’s how a tax accountant can help:
Chasing up delays: A tax accountant can follow up with HMRC on your behalf, helping to speed up the resolution of your issue. They have experience working with HMRC and know the right channels to use for escalation.
Requesting compensation: If HMRC’s delays have caused you financial loss, a tax accountant can help you request compensation. They can gather the necessary evidence to support your claim and ensure that you receive any refunds or payments you are entitled to.
3. Complaints About Tax Calculation Errors
Tax calculation errors can result in overpayment or underpayment of taxes, penalties, and interest charges. These errors can arise due to mistakes in your tax return, HMRC’s processing errors, or incorrect application of tax laws.
A tax accountant can:
Review your tax returns: If you believe that HMRC has made a mistake in calculating your tax liability, a tax accountant can review your tax returns and financial records to identify where the error occurred.
Prepare a detailed explanation: Once the error is identified, a tax accountant can prepare a detailed explanation for HMRC, clearly outlining the mistake and providing evidence to support your case.
Negotiate a correction: If the error is significant, a tax accountant can negotiate with HMRC to correct the mistake and ensure that you are not penalized for underpayment or refunded for overpayment.
4. Complaints About Penalties and Interest Charges
If you’ve been hit with penalties or interest charges due to missed tax deadlines or errors in your tax return, a tax accountant can help you challenge these charges.
Here’s how:
Determine the validity of penalties: A tax accountant can review the penalties and interest charges imposed by HMRC to determine whether they are justified. In some cases, penalties may have been issued incorrectly, or there may be grounds for appeal.
Request a penalty review: If you believe the penalties are unfair, a tax accountant can help you request a penalty review from HMRC. They will present your case, providing evidence of any mitigating circumstances that may justify the reduction or removal of the penalties.
Appeal penalties: If HMRC does not agree to reduce or remove the penalties, a tax accountant can assist you in appealing the decision, either through HMRC’s internal review process or the tax tribunal.
The Practical Steps a Tax Accountant Will Take in Handling Your Complaint
A tax accountant doesn’t just provide advice—they take practical steps to resolve your complaint. Here’s what you can expect them to do:
Initial Consultation: During the initial consultation, the tax accountant will review your case, discuss the nature of your complaint, and outline the steps they will take to resolve it. They will also provide you with an estimate of the costs involved.
Gathering Evidence: The tax accountant will gather all relevant evidence to support your complaint. This may include tax returns, financial records, emails, and other documentation that shows HMRC’s error or poor service.
Preparing the Complaint: The accountant will draft a formal complaint letter on your behalf, ensuring that it addresses all relevant points and includes the necessary supporting evidence.
Submitting the Complaint: Once the complaint is prepared, the tax accountant will submit it to HMRC on your behalf. They will ensure that the complaint is sent to the correct department and follow up if there are any delays in receiving a response.
Handling HMRC’s Response: After HMRC responds to your complaint, the tax accountant will review their response and advise you on the next steps. If the response is unsatisfactory, they will help you escalate the complaint through HMRC’s internal review process or to external bodies such as the Adjudicator’s Office.
Representing You in Negotiations or Appeals: If your complaint leads to negotiations with HMRC or an appeal, the tax accountant will represent you throughout the process, ensuring that your interests are protected and that the dispute is resolved as favorably as possible.
How to Find a Qualified Tax Accountant
Finding a qualified tax accountant to help with your HMRC complaint is crucial. Here are some tips for finding the right professional:
Check qualifications: Look for tax accountants who are members of professional bodies, such as the Chartered Institute of Taxation (CIOT) or the Association of Taxation Technicians (ATT). These qualifications ensure that the accountant has received proper training and adheres to professional standards.
Ask for recommendations: If you know other business owners or individuals who have dealt with HMRC disputes, ask them for recommendations. Personal referrals can be a great way to find a reliable tax accountant.
Review experience: Make sure the accountant you choose has experience dealing with HMRC complaints and appeals. This experience will be invaluable in navigating the process efficiently.
Discuss fees upfront: Before hiring a tax accountant, ask for a clear breakdown of their fees. Some accountants charge a flat fee for handling complaints, while others charge by the hour. Make sure you understand the costs involved and that they are within your budget.
Making a complaint against HMRC can be a daunting and time-consuming process, but with the help of a qualified tax accountant, you can navigate it more smoothly. From gathering evidence to drafting your complaint and negotiating with HMRC, a tax accountant provides valuable expertise and support at every stage. Whether your complaint is about poor service, delays, tax errors, or penalties, involving a tax professional can increase your chances of a favorable outcome and help you resolve the dispute more quickly.
By taking a proactive approach and seeking professional help early, you can avoid common pitfalls, reduce stress, and ensure that your complaint is handled in the best possible way. If you’re facing difficulties with HMRC and aren’t sure where to start, hiring a tax accountant could be the most effective solution to protect your financial interests and resolve the issue efficiently.
FAQs
1. Can you make a complaint to HMRC anonymously?
No, you must provide your personal details such as your National Insurance number or Unique Taxpayer Reference (UTR) when submitting a complaint.
2. How long does HMRC take to resolve a complaint?
HMRC aims to respond to complaints within 15 working days, but complex cases may take longer.
3. Can you make a complaint to HMRC on behalf of someone else?
Yes, but you must have the person’s consent and authorization to act on their behalf before submitting the complaint.
4. How do you authorize someone to act on your behalf with HMRC?
You can authorize someone by filling out HMRC’s form 64-8 or by setting up authorization through your online HMRC account.
5. Can you complain to HMRC about Self Assessment deadlines or penalties?
Yes, you can complain about penalties or charges, but you need to provide a valid reason, such as delays or incorrect assessments.
6. What happens if you stop paying taxes while waiting for a complaint to be resolved?
If you stop paying taxes, HMRC may charge you interest and penalties, regardless of the ongoing complaint.
7. Can you escalate a complaint if HMRC refuses to review it?
Yes, if HMRC refuses to review your complaint, you can escalate the matter to the Adjudicator’s Office or your local MP.
8. Is there a time limit for complaining to HMRC?
Yes, you generally have up to 12 months from the date of the issue to file a complaint, though it may vary depending on the nature of the complaint.
9. Can businesses complain about HMRC’s services?
Yes, businesses can lodge complaints with HMRC regarding issues such as VAT, corporation tax, or PAYE.
10. Can you complain if HMRC miscalculates your VAT refund?
Yes, if you believe there has been a miscalculation in your VAT refund, you can submit a complaint to HMRC.
11. Can you claim compensation from HMRC for delays in receiving a tax refund?
Yes, HMRC may offer compensation for unreasonable delays, but this is assessed on a case-by-case basis.
12. Can you dispute a penalty without submitting a formal appeal?
Yes, you can discuss the penalty with HMRC first, and if no resolution is found, you may then need to submit a formal appeal.
13. Can you request a refund for professional fees if HMRC’s mistake caused you to hire a tax adviser?
Yes, HMRC may refund reasonable professional fees if the mistake was their fault, but keep all receipts for proof.
14. What if HMRC fails to meet its service charter standards?
If HMRC breaches its service charter commitments, you can include this in your complaint for further review.
15. Can you contact HMRC’s complaints team directly by email?
No, HMRC does not accept complaints via email. You must use their online form, phone, or post to submit complaints.
16. Is it possible to withdraw a complaint once it’s been submitted to HMRC?
Yes, you can withdraw a complaint at any time by contacting HMRC and requesting its cancellation.
17. Can HMRC penalize you for making a complaint?
No, HMRC cannot penalize or treat you unfairly for making a complaint. They are required to handle all complaints impartially.
18. What should you do if HMRC ignores your complaint?
If HMRC does not respond to your complaint within the stated timeframe, you can escalate the matter to the Adjudicator or Ombudsman.
19. Can HMRC delay repayments because of an ongoing complaint?
HMRC may delay repayments if they are directly related to the issue under investigation, but they are required to process other unrelated payments on time.
20. Can you submit multiple complaints to HMRC at once?
Yes, you can submit multiple complaints, but it’s advisable to clarify each issue separately to ensure efficient handling.
21. Are there any third-party services to help you file a complaint with HMRC?
Yes, third-party services like tax advisers or accountants can help you submit and manage complaints on your behalf.
22. Can you complain about an HMRC debt collection letter?
Yes, if you believe the debt collection letter is incorrect or unreasonable, you can lodge a formal complaint with HMRC.
23. Can a complaint affect your ongoing tax investigations?
Filing a complaint should not affect ongoing investigations, but you should continue cooperating with HMRC while your complaint is reviewed.
24. Can you sue HMRC for damages caused by their mistakes?
In some cases, you can pursue legal action if HMRC’s mistake resulted in financial losses, but this generally requires legal advice and evidence.
25. What’s the difference between a complaint and an appeal with HMRC?
A complaint addresses issues with HMRC’s service, while an appeal challenges a specific tax decision or assessment.
26. Can you complain about HMRC’s online services being unavailable?
Yes, if HMRC’s online services are consistently unavailable or malfunctioning, you can submit a service-related complaint.
27. Can you complain about incorrect PAYE coding notices?
Yes, if you believe your PAYE code is incorrect, you can complain or request a review by HMRC.
28. Can you receive compensation for distress or inconvenience caused by HMRC?
Yes, HMRC may award compensation for distress or inconvenience if their actions have caused significant emotional or financial strain.
29. Can a tax adviser complain on behalf of your business to HMRC?
Yes, authorized tax advisers can submit complaints on behalf of businesses if they are properly authorized with HMRC.
30. Can you complain if HMRC closes your Self Assessment account without notice?
Yes, you can submit a complaint if HMRC closes your Self Assessment account without prior communication or explanation.
31. Can you request an in-person meeting to resolve your complaint with HMRC?
In certain cases, you may request a face-to-face meeting, but HMRC generally prefers resolving complaints via phone or written correspondence.
32. Does HMRC have a specific deadline to pay compensation for delays?
There is no strict deadline for HMRC to pay compensation, but they aim to resolve compensation claims within their service timeframes.
33. Can you make a complaint to HMRC in Welsh?
Yes, HMRC offers services in Welsh, and you can submit your complaint in Welsh if you prefer.
34. Can you get help from Citizens Advice for HMRC complaints?
Yes, Citizens Advice can offer guidance on how to file complaints with HMRC and may assist with disputes.
35. Can you complain if HMRC takes money from your wages through PAYE without notice?
Yes, if you believe HMRC has wrongly taken money through PAYE without proper notification, you can submit a complaint.
36. Can you complain about HMRC ignoring your change of address?
Yes, if HMRC continues to send mail to the wrong address after you've notified them of a change, you can lodge a service complaint.
37. Can HMRC dismiss a complaint if it’s deemed frivolous?
HMRC can dismiss complaints they believe are without merit, but they must provide you with an explanation for the dismissal.
38. Can you challenge HMRC’s decision to not refund tax overpayments?
Yes, if HMRC refuses to refund an overpayment, you can submit a formal appeal or request a review of the decision.
39. Can HMRC hold onto your tax refund because of a pending dispute?
Yes, if the refund is related to a matter under investigation, HMRC may withhold it until the issue is resolved.
40. Can HMRC adjust your tax code while a complaint is under review?
Yes, HMRC can adjust your tax code during a complaint review, especially if the adjustment addresses the issue being complained about.
Disclaimer:
The information provided in our articles is for general informational purposes only and is not intended as professional advice. While we strive to keep the information up-to-date and correct, Pro Tax Accountant makes no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, products, services, or related graphics contained in the articles for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
We encourage all readers to consult with a qualified professional before making any decisions based on the information provided. The tax and accounting rules in the UK are subject to change and can vary depending on individual circumstances. Therefore, Pro Tax Accountant cannot be held liable for any errors, omissions, or inaccuracies published. The firm is not responsible for any losses, injuries, or damages arising from the display or use of this information.
Comments