Tax Tribunal Appeal Bundle: How to Prepare for a First-tier Tribunal Hearing

What Is the First-tier Tribunal (Tax Chamber)?

The First-tier Tribunal (Tax Chamber) is the independent judicial body that hears appeals against decisions made by HMRC. It sits within the unified tribunal system established by the Tribunals, Courts and Enforcement Act 2007 and handles a wide range of tax disputes — from income tax assessments and VAT penalties to National Insurance contributions.

Unlike the county court or family court, the tax tribunal operates under its own procedural rules and has its own distinct culture. It is designed to be accessible to unrepresented taxpayers, and you can appear without a representative (FTT r.11). That said, the tribunal takes evidence and procedure seriously, and a well-prepared bundle signals to the judge that you have taken your case seriously too.

What Kinds of Decisions Can You Appeal?

You can appeal to the First-tier Tribunal (Tax Chamber) against a range of HMRC decisions, including:

• Income tax assessments — where HMRC has assessed you for additional tax
• Corporation tax determinations — assessments raised against limited companies
• VAT assessments and penalties — including late submission and late payment penalties (FA 2021 Schs 24 and 26 for VAT periods from 1 January 2023; default surcharge for earlier periods)
• PAYE coding notices — where your tax code is wrong and HMRC will not correct it
• National Insurance contributions — disputes about liability or categorisation
• Penalty assessments — for late filing, late payment, inaccuracies, or failure to notify
• Closure notices — following an HMRC enquiry into your tax return
• Information notices — in limited circumstances, you can appeal an HMRC information notice

Not every HMRC decision carries a right of appeal. The decision letter itself should tell you whether you can appeal and the time limit for doing so.

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Before You Appeal: The HMRC Review Process

Before lodging a tribunal appeal, you should understand the two-stage process that HMRC operates.

Stage 1: Internal Review

What you do first depends on the tax. A review is a fresh look at the decision by an HMRC officer who was not involved in it. Direct tax: appeal to HMRC within 30 days (s.31A). HMRC then gives its view; you may require a review (s.49B), accept HMRC's offer of review within 30 days (s.49C(8)), or notify the appeal to the tribunal (s.49D; within 30 days of an offer of review, s.49H). VAT: accept the offered review, or appeal to the tribunal, within 30 days (ss.83C, 83G). Late appeals need HMRC agreement or tribunal permission (TMA s.49; VATA s.83G(6)).

The review officer will examine the facts, the law, and the original officer's reasoning. They can uphold the decision, vary it, or cancel it entirely. HMRC must give its conclusions within 45 days unless a longer period is agreed (TMA s.49E(6); VATA s.83F(6)).

Stage 2: Tribunal Appeal

If the review upholds the decision — or if you prefer to skip the review and go straight to the tribunal — you can lodge a formal appeal. Direct tax: only after appealing to HMRC. If HMRC offered a review you did not take up, notify the tribunal within 30 days of the offer (s.49H); after a review, within 30 days of the review conclusion letter (s.49G). VAT: within 30 days of the decision or of the review conclusion (VATA s.83G).

If you miss the deadline, you can apply for permission to appeal late, but you will need to explain why the delay occurred and the tribunal has discretion to refuse.

Which Route Should You Choose?

You cannot ask for a review once you have notified the tribunal (s.49B(4)(c); s.83C(4)).

Reviews are usually quicker than tribunal appeals (GOV.UK). If HMRC concedes, you avoid the stress and preparation of a tribunal hearing entirely. If they do not, you have lost only a few weeks.

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Grounds of Appeal: Getting the Foundation Right

Your grounds of appeal are the heart of your case. They set out precisely why you believe HMRC's decision is wrong — whether on the facts, the law, or both.

What Makes Strong Grounds of Appeal?

Strong grounds of appeal are specific, evidence-based, and legally coherent. They should:

1. Identify the decision being appealed — quote the reference number and date
2. State the legal basis for your appeal — which provision of tax law applies
3. Explain why the decision is wrong — on the facts, the law, or both
4. Reference supporting evidence — point to documents that support your position
5. State the outcome you are seeking — cancellation of the assessment, reduction of the penalty, or other relief

Common Grounds of Appeal

What to Avoid

Weak grounds of appeal include:

• "I disagree with HMRC" without explaining why
• Arguments based on personal hardship alone (unless relevant to a penalty reasonable excuse defence)
• Political objections to the tax system
• Grounds that have already been rejected by higher courts

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Preparing Your Bundle: What to Include

The tribunal will expect a paginated, indexed bundle containing all the documents both parties intend to rely upon at the hearing. In many cases, the tribunal will issue directions specifying how the bundle should be prepared and when it must be filed.

Core Bundle Contents

Your bundle should typically include the following sections, in this order:

Formatting Requirements

The Tax Chamber has General Guidance on PDF Bundles (24 February 2025); follow it unless the tribunal directs otherwise. Bundles should be:

• Paginated consecutively, with the index page numbers matching the PDF page numbers (para 7(4))
• Indexed — with a table of contents at the front listing each document and its page number
• Logical — documents arranged in chronological or thematic order
• Legible — all documents must be readable, with poor-quality copies replaced where possible
• Cross-referenced — witness statements should reference bundle page numbers

Electronic bundles are now standard in the tax tribunal. PDF bundles should include bookmarks for each document and be text-searchable (OCR processed).

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The Hearing: What to Expect

Tax tribunal hearings range from simple paper determinations to multi-day oral hearings, depending on the complexity of the case.

Categories of Case

You have the right to request an oral hearing even in default paper cases, and it is usually worth doing so. A hearing gives you the chance to explain your case in your own words and to respond to the judge's questions.

On the Day

The hearing will typically proceed as follows:

1. Introduction — the judge outlines the issues and confirms the parties are ready
2. Opening — the order depends on who bears the burden; in penalty cases HMRC usually opens
3. Your case — you present your case, referring to documents in the bundle
4. Questions — the judge may ask questions of both parties
5. Closing submissions — each party summarises its position
6. Decision — the judge may give a decision on the day or reserve it for later

Practical Tips for the Hearing

• Know your bundle — you should be able to find any document quickly by page number
• Prepare a skeleton argument — a short written summary of your legal arguments
• Be concise — judges appreciate focused submissions
• Answer questions directly — do not evade or speculate
• Remain professional — even if you disagree with HMRC's position, keep your tone measured

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Common Mistakes in Tax Tribunal Appeals

Certain mistakes recur frequently:

1. Missing the deadline — the 30-day time limit is strictly enforced, and the tribunal starts from the position that permission should not be granted unless satisfied it should be (Martland at [44])
2. Vague grounds of appeal — "I disagree" is not a ground of appeal
3. Failing to engage with HMRC's case — your grounds should address HMRC's reasoning directly
4. Poor bundle organisation — unpaginated, unindexed bundles irritate judges and weaken your credibility
5. Including irrelevant documents — a 500-page bundle for a £2,000 penalty appeal is excessive
6. Not requesting a hearing — paper determinations can go against you without the chance to explain
7. Ignoring directions — the tribunal's case management directions are not optional

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Using BundleCreator for Tax Tribunal Appeals

Preparing a tribunal bundle manually — numbering pages, creating an index, ensuring consistent formatting — is tedious and error-prone. BundleCreator automates the mechanical work so you can focus on the substance of your case.

With BundleCreator, you can:

• Upload documents in any format and reorder them into logical sections
• Apply automatic consecutive pagination across the entire bundle
• Generate a hyperlinked index with a single click
• Add bookmarks for each document in the final PDF
• Ensure your bundle is text-searchable through built-in OCR processing
• Export a court-ready electronic bundle designed to follow the Tax Chamber's PDF bundle guidance

Whether you are a taxpayer representing yourself or an accountant preparing bundles for clients, BundleCreator removes the formatting headache and lets you concentrate on building a persuasive case.

Try BundleCreator for your tax tribunal bundle →

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Frequently Asked Questions

How long do I have to appeal to the tax tribunal?

Direct tax: appeal to HMRC within 30 days (s.31A). HMRC then gives its view; you may require a review (s.49B), accept HMRC's offer of review within 30 days (s.49C(8)), or notify the appeal to the tribunal (s.49D; within 30 days of an offer of review, s.49H). VAT: accept the offered review, or appeal to the tribunal, within 30 days (ss.83C, 83G). Late appeals need HMRC agreement or tribunal permission (TMA s.49; VATA s.83G(6)). If you miss the deadline, you can apply for late permission, but the tribunal may refuse.

Do I need a solicitor or accountant to appeal?

No. The First-tier Tribunal (Tax Chamber) is designed to be accessible to unrepresented taxpayers, and you can represent yourself or appoint a representative, who need not be legally qualified (FTT r.11). However, for complex or high-value disputes, professional advice can be valuable.

How much does it cost to appeal to the tax tribunal?

There is currently no fee to lodge an appeal with the First-tier Tribunal (Tax Chamber).

What happens if I lose?

If the tribunal dismisses your appeal, HMRC's decision stands and you will need to pay the tax or penalty assessed. You may be able to appeal further to the Upper Tribunal (Tax and Chancery Chamber), but only on a point of law — not simply because you disagree with the factual findings.

Can HMRC settle before the hearing?

Yes. HMRC can agree to settle a case at any stage, including after the appeal has been lodged. ADR is available for many disputes, but not for Default Paper or Basic cases or automatic penalties.

What is the burden of proof?

In most tax appeals, the burden of proof lies with the taxpayer. This means you must demonstrate, on the balance of probabilities, that HMRC's decision is wrong. There are exceptions — HMRC bears the burden of proving the penalty is prima facie due (Perrin at [69]) and the conditions for a discovery assessment.

Can I claim costs if I win?

The tribunal can award costs for wasted costs or unreasonable conduct in any category (r.10(1)(a),(b)); in a Complex case the tribunal may also order the losing party to pay costs, unless the taxpayer asked in writing within 28 days of the allocation notice for the case to be excluded from costs liability (r.10(1)(c)).

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This article is provided for general informational purposes only and does not constitute legal or tax advice. The law and procedure described applies to England and Wales. If you are unsure about your specific situation, seek independent legal or professional advice.