The First-tier Tribunal (Tax Chamber)
The First-tier Tribunal (Tax Chamber) hears appeals against decisions made by HM Revenue and Customs. Governed by the Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009, it handles disputes covering income tax, corporation tax, VAT, capital gains tax, inheritance tax, stamp duty land tax, and penalties.
Appeals are categorised as Default Paper, Basic, Standard, or Complex. The category determines hearing procedures, costs rules, and bundle requirements. Proper bundle preparation is essential - poorly organised bundles waste tribunal time and can prejudice your case.
Categories of Tax Appeal
The Tax Chamber assigns cases to one of four categories, each with different procedural requirements and costs implications.
- Default Paper: usually decided without a hearing (r.23(2)(a)); any party may ask in writing for a hearing (r.26(7))
- Basic: usually a hearing with minimal exchange of documents
- Standard: detailed case management and a hearing
- Complex: costs shifting applies unless the taxpayer opts out within 28 days (r.10(1)(c))
- In every category costs may be ordered for wasted costs or unreasonable conduct (r.10(1)(a),(b)).
Types of Tax Appeals
The Tax Chamber handles a broad range of disputes arising under the Taxes Management Act 1970, the Value Added Tax Act 1994, and related legislation. Common appeals include challenges to assessments, penalty determinations, and HMRC information notices.
- Self-assessment corrections and closure notice disputes (s.28A TMA 1970)
- Discovery assessments under s.29 TMA 1970
- VAT assessments, input tax recovery, and registration disputes
- Penalty appeals: inaccuracies (Sch 24 FA 2007), late filing (Sch 55 FA 2009), late payment (Sch 56 FA 2009)
- Capital gains tax: principal private residence relief, business asset disposal relief (formerly entrepreneurs' relief; TCGA 1992 s.169H)
- Inheritance tax: business property relief, agricultural property relief, valuation
- IR35 and employment status disputes (off-payroll working)
- Information notice appeals under Sch 36 FA 2008
Appeal Procedure and Time Limits
Strict time limits apply to tax appeals. Under s.31A TMA 1970, a notice of appeal must be given to HMRC within 30 days (direct tax); VAT appeals go to the tribunal within 30 days (VATA s.83G). Late appeals need HMRC's agreement (reasonable excuse, TMA s.49(3)–(6)) or the tribunal's permission (Martland). HMRC must offer a review of VAT decisions (s.83A) and may offer one on direct-tax appeals; a direct-tax appellant may require one (TMA ss.49B–49C).
- 30 days to appeal (to HMRC for direct tax; to the tribunal for VAT)
- HMRC review: optional 45-day internal review process
- Late appeals: need HMRC's agreement (reasonable excuse, TMA s.49(3)–(6)) or the tribunal's permission (Martland)
- Alternative Dispute Resolution (ADR): not available for Default Paper or Basic cases or automatic penalties

