After Your Tax Tribunal Decision: What Happens Next

You've prepared your case and had your hearing. Now you're waiting—or you've just opened an envelope (or email) from the tribunal. Either way, you're looking at a decision that determines what happens to your tax bill.

Whether the tribunal ruled in your favour or not, there are things you need to do and deadlines you can't afford to miss. This guide covers what happens after the First-tier Tribunal issues its decision—from understanding the outcome, to correcting mistakes, to the full appeals process if you want to challenge it. If you're looking for the big-picture view of how a UK tax dispute unfolds, our complete timeline maps every stage.

How You'll Receive The Decision

Some tribunals give a decision orally at the end of the hearing. If that happens, you'll know the outcome before you leave the room (or the video call). But in most cases—especially Standard and Complex ones—the judge reserves the decision, meaning they'll take the case away, consider the evidence, and send the decision in writing later.

GOV.UK states that decision notices are usually sent within 12 weeks of the hearing. Under Rule 35(2) of the Tribunal Procedure Rules, the tribunal must send a decision notice as soon as reasonably practicable after making its decision.

The decision notice must tell you:

• The tribunal's decision (what they've decided)
• Your right to appeal
• The time limit and method for exercising that right

Summary Reasons Vs Full Written Reasons

The decision notice must include either summary or full written findings and reasons (Rule 35(3))—unless oral reasons were given at the hearing (in which case the written notice may arrive without reasons under the new Rule 35(3A), added by SI 2026/115 from 2 March 2026).

This distinction matters. If you're thinking about appealing to the Upper Tribunal, you'll need full written reasons. Rule 35(4) says you must request full written reasons before applying for permission to appeal—and you can't identify a legal error in reasoning you haven't seen.

The deadline to request full written reasons is 14 days from the date the tribunal sends the decision notice (Rule 35(5), as amended by SI 2026/115). This was previously 28 days—some GOV.UK pages have not yet been updated. For the full picture, including what changed and how to make the request, see our guide to your right to written reasons. Don't wait to see how you feel about the decision. If you received only summary reasons, request the full version straight away. It costs nothing and keeps your options open.

Understanding Your Decision

When you receive the decision notice, look for three things:

1. The outcome—did the tribunal allow your appeal, dismiss it, or allow it in part?
2. The reasoning—why did the tribunal reach that conclusion? What evidence did it rely on?
3. The appeal rights notice—what are your options, and what are the deadlines?

Three Possible Outcomes

• Appeal allowed: The tribunal has decided in your favour. HMRC's decision is overturned (or the assessment is reduced).
• Appeal dismissed: The tribunal has upheld HMRC's position. The tax, penalty, or other liability stands.
• Appeal allowed in part: The tribunal agreed with you on some issues but not others. The assessment is adjusted to reflect this.

Under section 50(6) of the Taxes Management Act 1970, if the tribunal finds you've been overcharged, it reduces the assessment accordingly. If it finds you've been undercharged (section 50(7)), the assessment is increased. The tribunal adjusts the existing assessment—it doesn't create a new one.

The decision is binding on both you and HMRC. Under section 50(10) TMA 1970, the tribunal's determination is "final and conclusive"—unless it's successfully challenged on appeal.

If You Won

What Happens Next

HMRC must give effect to the tribunal's decision. Their internal guidance (ARTG8980) confirms they must "take any steps necessary to give effect to the tribunal's decision, regardless of any further appeal."

In practice, this means:

• Overpaid tax is refunded with interest. If the tribunal reduced your assessment, any tax you've already paid above the revised amount is repaid, with interest calculated from the date of overpayment (ARTG11040).
• Penalties are cancelled or reduced. If your appeal was against a penalty and the tribunal allowed it, the penalty is cancelled. If the underlying assessment is reduced, any percentage-based penalty is recalculated on the lower amount.
• HMRC updates their records. The assessment on your tax record is amended to reflect the tribunal's decision.

Don't Celebrate Too Early

Here's something most people don't realise: HMRC can appeal too. Under section 11(2) of the Tribunals, Courts and Enforcement Act 2007, "any party" to the case has a right of appeal to the Upper Tribunal—and that includes HMRC.

HMRC's internal guidance (ARTG8980) gives their litigator 70 days from the date of full written reasons to decide whether to appeal further. During this period, HMRC will still give effect to the decision, but the matter isn't truly settled until the appeal window closes. If you've won, keep this in mind before assuming everything is fully settled.

If You Lost

Immediate Consequences

If the tribunal dismissed your appeal, several things happen:

• Tax becomes payable. Any additional tax due is payable within 30 days of HMRC sending you notice of the total amount (ARTG8930). Any earlier postponement of direct tax, or hardship suspension for indirect tax, ceases when the decision is made.
• Interest runs from the original due date. This is important: late payment interest doesn't start from the tribunal decision. It runs from the date the tax was originally due. The appeal process doesn't pause the interest clock.
• Penalties are enforced. Penalties that were "informally stood over" during the appeal become payable. If the penalty was part of your appeal and the tribunal upheld it, it's now due.

If you can't pay the full amount immediately, you can apply for a time to pay arrangement with HMRC. This is a discretionary instalment plan where HMRC considers your financial circumstances.

Your Options

Losing doesn't necessarily mean the end. You have several options, depending on the circumstances:

• Correct a clerical mistake (Rule 37)—if the decision contains an obvious error
• Apply to set aside the decision (Rule 38)—if there was a procedural problem with the hearing
• Apply for permission to appeal (Rule 39)—if the tribunal got the law wrong
• Negotiate with HMRC—in some cases, there may still be scope to settle on terms

Each of these has its own requirements and deadlines, covered below.

Correcting Mistakes (Rule 37)

Rule 37 of the Tribunal Procedure Rules allows the tribunal to correct "any clerical mistake or other accidental slip or omission" in a decision at any time. There's no deadline.

This covers things like a wrong date, a miscalculation, a misspelled name, or a paragraph that clearly doesn't say what was intended. It doesn't cover changing the substance of the decision. If you think the tribunal applied the wrong legal test, that's not a clerical error—that's grounds for an appeal.

Either party can request a correction, or the tribunal can act on its own initiative. If a correction is made, the tribunal sends the amended decision to all parties.

Setting Aside A Decision (Rule 38)

Setting aside is not a way to challenge the outcome because you disagree with it. It's a remedy for procedural unfairness—where something went wrong with the process, not the reasoning.

The Two-Part Test

Under Rule 38(1) of the Tribunal Procedure Rules, the tribunal can set aside a decision (or part of one) if:

1. It's in the interests of justice to do so, and
2. At least one of four conditions is met.

Both parts must be satisfied. It's not enough that something went wrong—the tribunal must also conclude that justice requires the decision to be set aside.

The Four Conditions

The four conditions under Rule 38(2) are:

• (a) A document wasn't sent to or received by a party. For example, you never received the hearing notice because HMRC had your old address on file.
• (b) A document wasn't sent to the tribunal. For example, you sent your written submissions, but they were lost in the post and never reached the tribunal.
• (c) There was some other procedural irregularity. For example, you weren't given the chance to respond to new evidence HMRC raised at the hearing.
• (d) A party wasn't present at the hearing. For example, you were hospitalised on the hearing date and couldn't attend or request a postponement in time.

The Deadline And What Happens Next

You must apply in writing within 28 days of the date the tribunal sent the decision notice (Rule 38(3)).

If the tribunal sets aside the decision, the case is re-heard. It doesn't automatically reverse the original outcome—it wipes the slate clean and the case is decided afresh.

When Not To Use Rule 38

Don't apply to set aside simply because you're unhappy with the result. If the hearing was conducted properly but you think the tribunal got the law wrong, that's an appeal to the Upper Tribunal—not a set-aside application. Rule 38 is about whether the process was fair, not whether the answer was right.

Appealing To The Upper Tribunal

If you believe the First-tier Tribunal made an error of law, you can apply for permission to appeal to the Upper Tribunal (Tax and Chancery Chamber). This is the main route for challenging a tribunal decision on its merits—but only on legal grounds, not factual ones.

What "Point Of Law" Means

Under section 11(1) of the Tribunals, Courts and Enforcement Act 2007, you can only appeal on "any point of law arising from a decision" of the FTT. The Upper Tribunal doesn't rehear the facts or look at the evidence again. It asks: did the First-tier Tribunal get the law right?

The GOV.UK T399 guidance identifies four categories of legal error:

1. The tribunal didn't apply the correct law, or wrongly interpreted it. For example, it applied the wrong statutory test for a reasonable excuse.
2. There was a procedural error. Something went wrong with how the appeal was managed—for example, evidence wasn't properly disclosed.
3. There was no evidence, or not enough evidence, to support a finding. The tribunal found a fact when there was nothing in the evidence to justify it.
4. The tribunal didn't give good enough reasons. You can't understand from the written decision why you won or lost on a particular issue.

There's also a fifth category recognised by the courts: the conclusion was one no reasonable tribunal could have reached. This is sometimes called the Edwards v Bairstow test, after the leading House of Lords case Edwards v Bairstow [1956] AC 14. It's a high bar—it means the decision was irrational or perverse on the evidence, not merely one you disagree with.

What is NOT a point of law:

• Disagreeing with the weight the tribunal gave to particular evidence
• Thinking the tribunal should have believed you rather than HMRC
• The tribunal reaching a different conclusion than you expected
• The outcome feeling unfair (unless the process was unfair)

This is the hardest distinction to grasp, and it trips up many appellants. The fact that you're convinced the tribunal was wrong doesn't mean there's an error of law. If the tribunal heard the evidence, applied the right legal test, and reached a conclusion that was open to it—even if you'd have decided differently—there's no appeal.

The Permission Process Step By Step

You can't go straight to the Upper Tribunal. You must follow a staged process:

Step 1: Request full written reasons (Rule 35)
If you didn't receive full written reasons with your decision notice, apply within 14 days (Rule 35(5), as amended from 2 March 2026). You must do this before applying for permission to appeal—Rule 35(4) makes this a prerequisite. See our guide to written reasons for the full procedure.

Step 2: Apply to the FTT for permission to appeal (Rule 39)
Using Form T247, apply to the First-tier Tribunal within 56 days of the latest of: the decision notice, the full written reasons, a review notification, or an unsuccessful set-aside notification (Rule 39(2)). Your application must identify the decision, specify the alleged error(s) of law, and state the result you're seeking.

When the FTT receives your application, it may do one of three things: grant permission, refuse permission, or review its own decision under section 9 of the TCEA 2007 if it spots an error of law it wants to correct itself.

Step 3: If the FTT refuses—apply to the Upper Tribunal (UT Rule 21)
If the FTT refuses permission (or grants it on limited grounds only), you can apply to the Upper Tribunal using Form FTC1 within one month of the FTT's refusal notice (Rule 21(3) of the Upper Tribunal Rules). You'll need to include copies of the decision, the written reasons, and the FTT's refusal notice.

Step 4: If the UT refuses on paper—request an oral hearing
The Upper Tribunal initially considers applications on paper. If it refuses, you can request an oral hearing within 14 days. There's one exception: if the UT considers your application "totally without merit," no oral hearing is available.

Late applications are possible at each stage, but you'll need to explain the delay. The tribunal will refuse the application unless it decides to extend the time limit.

What The Upper Tribunal Can Do

If the Upper Tribunal finds an error of law, it has two options under section 12 of the TCEA 2007:

• Remit the case to the FTT. This is the more common outcome. The Upper Tribunal sends the case back to the First-tier Tribunal—sometimes to a different panel—for a fresh hearing with directions. You'd effectively re-run part or all of the original hearing.
• Re-make the decision itself. This is less common and happens where the facts are clear and the UT doesn't need to hear evidence again. The UT can make any decision the FTT could have made.

Here's an important point: even if the Upper Tribunal finds an error of law, it doesn't have to set the decision aside. Under section 12(2) TCEA 2007, the UT "may (but need not)" set aside the decision. If the error didn't actually affect the outcome, the UT can dismiss the appeal despite the error.

The Costs Question

This is where the stakes change significantly.

At the First-tier Tribunal, you're largely protected from costs. In Basic and Standard cases, costs are only awarded for unreasonable conduct. Most appellants never face a costs order.

That safety net disappears at the Upper Tribunal. In tax appeals, the Upper Tribunal has broad power to award costs under Rule 10 of the Upper Tribunal Rules. The GOV.UK guidance puts it plainly: "You'll most likely have to pay the other party's costs if you lose."

There are two protections worth knowing about:

• Financial means: Before ordering costs against an individual, the tribunal must consider "that person's financial means" (Rule 10, UT Rules). This doesn't prevent a costs order, but it may reduce it.
• No filing fee: There's no fee to apply to the Upper Tribunal (£0). The financial risk isn't in the application—it's in losing.

The practical question is: how confident are you that the FTT made a genuine legal error, and is that confidence worth the costs exposure if you lose? If you can identify a clear legal mistake—the tribunal applied the wrong test, ignored binding case law, or gave no reasons—an appeal may be well-founded. If your real complaint is that the tribunal weighed the evidence differently than you'd have liked, the costs risk is hard to justify.

How Long Does a UT Appeal Take?

The Upper Tribunal process typically takes 6 to 18 months from application to decision, depending on complexity and whether the case involves an oral hearing. If the UT remits the case back to the FTT for rehearing, add the time for a fresh FTT hearing on top. Interest continues to accrue on any unpaid tax throughout this period.

When To Get Help

You have the right to represent yourself at the Upper Tribunal, just as you did at the FTT. But the Upper Tribunal is where professional representation becomes most valuable. The cases are more technical, the procedure is more formal, and the costs consequences are real. If you've been unrepresented until now, this is the point to seriously consider getting advice.

Free sources of help include:

• TaxAid — free tax advice for people on low incomes (also covers older people, following the merger with TaxHelp for Older People in 2025)
• Citizens Advice — general advice including tax disputes

Even a single consultation with a tax barrister or solicitor—to assess whether you have a realistic point of law—can save you from an expensive mistake or confirm you have a case worth pursuing.

Beyond The Upper Tribunal

If the Upper Tribunal decides against you, there's a further right of appeal to the Court of Appeal (or Court of Session in Scotland) under section 13 of the TCEA 2007. But the threshold is higher: the court must be satisfied that the appeal raises "some important point of principle or practice" or that there's "some other compelling reason" for it to be heard.

Beyond the Court of Appeal lies the Supreme Court, which hears just 0–2 tax cases per year. Cases at this level shape the law for everyone—they aren't vehicles for resolving individual disputes.

For the vast majority of appellants, the realistic endpoint is the First-tier Tribunal decision or, at most, the Upper Tribunal. Appeals beyond that involve the full costs regime, specialist legal representation, and timescales measured in years. They're worth knowing about, but for most people they're theoretical.

Key Deadlines At A Glance

What To Do Now

If You Won

• [ ] Confirm the decision notice matches your understanding of the outcome
• [ ] Check that HMRC updates your tax record and processes any refund
• [ ] Note the 70-day period—HMRC may still appeal to the Upper Tribunal
• [ ] Keep all tribunal correspondence until the appeal window closes
• [ ] If HMRC hasn't acted within a reasonable time, contact them citing the tribunal decision

If You Lost

• [ ] Read the decision carefully—understand why the tribunal decided against you
• [ ] If only summary reasons were provided, request full written reasons within 14 days
• [ ] Consider whether there was a procedural problem (Rule 38 set-aside—28 days)
• [ ] Consider whether the tribunal made a legal error (permission to appeal—56 days from full written reasons)
• [ ] If you owe additional tax, apply for a time to pay arrangement if you can't pay in full
• [ ] Consider getting professional advice before pursuing an Upper Tribunal appeal—especially given the costs risk
• [ ] Don't let deadlines pass while you're deciding—request full written reasons immediately, even if you're unsure about appealing

Further Reading

• The tribunal's decision — GOV.UK guidance on what happens after the hearing
• How to appeal to the Upper Tribunal (T399) — GOV.UK detailed guidance on UT appeals
• Upper Tribunal (Tax and Chancery) — GOV.UK overview including costs and contact details
• Form T247 — application for permission to appeal to the UT (filed at the FTT)
• Form FTC1 — application for permission to appeal to the UT (filed at the UT)
• Difficulties paying HMRC — time to pay arrangements
• Tribunal Procedure Rules 2009 — the rules governing FTT proceedings
• Upper Tribunal Rules 2008 — the rules governing UT proceedings
• Section 50, Taxes Management Act 1970 — how the tribunal adjusts assessments
• Sections 9–13, Tribunals, Courts and Enforcement Act 2007 — review, appeal, and onward appeal provisions
• Understanding your appeal rights — what to do when you first receive an HMRC decision
• How to appeal to the tax tribunal — step-by-step guide to filing your appeal
• Tribunal tracks and costs — case categories and the costs regime
• The complete timeline of a UK tax dispute — every stage from decision to resolution

This article is for informational purposes only and does not constitute legal or tax advice. For advice specific to your situation, consult a qualified tax adviser, accountant, or solicitor.