Guides

How To Appeal to the Tax Tribunal: A Step-by-Step Guide

You've decided to appeal. Here's exactly how to file your appeal with the First-tier Tribunal—online or by post—what to include, and what happens next.

Liam Williams

21 Feb 2026 — 10 min read

You've looked at the HMRC decision letter, you've weighed your options, and you've decided: you're going to appeal. Good. The First-tier Tribunal (Tax Chamber) exists precisely for this—an independent judge will look at your case fresh, free of HMRC's internal assumptions.

But before you file anything, there's one question you need to answer. Get it wrong, and your appeal could be thrown out before a judge ever reads it.

First: Which Route Applies to You?

There are two completely different routes for appealing, and the one you must use depends on the type of tax involved. This is not optional—using the wrong route can result in your appeal being struck out.

Direct Taxes: Income Tax, Capital Gains Tax, Corporation Tax, PAYE, National Insurance

If your dispute involves any of these taxes, you cannot go straight to the tribunal. The law requires you to appeal to HMRC first, in writing, under section 31A of the Taxes Management Act 1970. Only after HMRC has your appeal can you notify it to the tribunal under section 49D TMA 1970.

The word "notify" is deliberate. You're not starting a new appeal at the tribunal—you're telling the tribunal about an appeal that already exists at HMRC. The legislation uses the past tense: the notice of appeal "has been given" to HMRC. HMRC must have it before you contact the tribunal.

How serious is this? In Curtis v HMRC [2025] UKFTT 1605 (TC) (reported in Claritax News), the tribunal struck out appeals filed in May 2023 because the notice to HMRC was posted on the same day as the tribunal filing. Under the Interpretation Act 1978, the posted letter would be deemed received the next day—meaning the tribunal received the appeal before HMRC did. The order was wrong, and the appeals were struck out.

The practical lesson: send your appeal to HMRC first. Wait until you can confirm they've received it. Then notify the tribunal. A copy of form T240 sent to HMRC can satisfy the section 31A requirement, but the timing matters.

If you've already had a statutory review and the outcome was "upheld" or "varied" and you still disagree, you have 30 days from the review conclusion letter to notify the tribunal under section 49G TMA 1970. If HMRC offered a review but you didn't accept it, you can notify the tribunal within the 30-day acceptance period under section 49H.

One critical warning: if HMRC offers you a review and you neither accept it nor notify your appeal to the tribunal within 30 days, section 49C(4) TMA 1970 treats the appeal as settled in HMRC's favour. Permanently. Our guide to statutory reviews explains this trap in detail.

Indirect Taxes: VAT, Customs Duty, Excise Duty, Insurance Premium Tax, Landfill Tax

If your dispute involves any of these taxes, your appeal goes directly to the tribunal under section 83G of the Value Added Tax Act 1994. There is no requirement to appeal to HMRC first.

The deadline is 30 days from the date on HMRC's decision letter (the date it was issued, not the date you received it). If you've had a statutory review, the deadline is 30 days from the review conclusion letter instead.

For indirect tax appeals, there is an additional complication: the "pay first" rule. We'll cover that below under Payment and Postponement.

How To File Your Appeal

There are two ways to file: online or by post/email. Both are equally valid. Filing costs £0—there is no fee to appeal to the tax tribunal.

Filing Online

The fastest method. The online portal is at appeal-tax-tribunal.service.gov.uk. You'll receive a reference number immediately.

The portal will walk you through each required field: your details, the decision you're appealing, the outcome you want, and your grounds for the appeal. You can upload documents (such as a copy of the HMRC decision letter) as part of the process.

Filing by Post or Email

Download form T240 (Notice of Appeal) from GOV.UK. It's 11 pages and available in English, Welsh, and alternative formats (Braille, large print, and easy-read versions are available on request from [email protected]).

Send the completed form to the tribunal:

Email: [email protected]
Post: First-tier Tribunal (Tax Chamber), PO Box 16972, Birmingham, B16 6TZ
Phone: 0300 303 5857 (Monday to Friday, 9am to 4pm) — for questions about the process, not for filing

If you're filing by post or email, you won't get a reference number immediately. The tribunal will send written acknowledgment once your appeal has been processed.

If you're appointing a friend, family member, or non-legal adviser to act on your behalf, you'll also need to file form T239 (Authorise a Representative) alongside your notice of appeal. This isn't needed for solicitors or barristers—only for non-legal representatives.

What To Include in Your Notice of Appeal

Rule 20(2) of the Tribunal Procedure Rules 2009 sets out what the tribunal requires. Whether you're using the online portal or form T240, you need to provide:

Your name and address
Your representative's name and address (if you have one)
An address where documents can be sent to you (this can be different from your home address)
Details of the decision you're appealing—the date, reference number, and what HMRC decided
The outcome you're seeking—what you want the tribunal to do (for example, "cancel the penalty" or "reduce the assessment to £X")
Your grounds of appeal—why you think HMRC's decision is wrong

You must also include a copy of the HMRC decision letter and any statement of reasons HMRC provided. If you've been through a statutory review, include the review conclusion letter too.

Writing Your Grounds of Appeal

Your grounds of appeal are the most important part of your notice. They tell the tribunal—and HMRC—what the dispute is actually about. They set the boundaries of the case.

Be specific. Explain exactly what you think HMRC got wrong. This might be:

A factual error — HMRC has the facts wrong (wrong income figure, wrong dates, wrong taxpayer)
A legal error — HMRC has applied the wrong legal test or misinterpreted the law
A disproportionate penalty — the penalty is too high for the circumstances
A reasonable excuse — if you're appealing a penalty for late filing or late payment, your grounds might explain why you had a reasonable excuse for missing the deadline. For Self Assessment penalties specifically, our SA penalties guide covers the SA370 form and the online appeal process

Vague grounds weaken your position. "I disagree with the decision" tells the tribunal nothing. "HMRC assessed me on income of £50,000 but my actual income was £32,000, as shown by my bank statements and payslips" tells the tribunal exactly what the dispute is about.

You don't need to write a legal essay. A clear, factual explanation in your own words is perfectly acceptable. The tribunal is used to dealing with unrepresented appellants and will not penalise you for informal language—what matters is that the substance is there. For detailed guidance on drafting your grounds—with worked examples for penalties, assessments, and discovery assessments—see our guide to writing your grounds of appeal.

Documents To Attach

At a minimum:

The HMRC decision letter (mandatory under Rule 20(3))
Any review conclusion letter from HMRC
Any correspondence with HMRC about the dispute

You don't need to include all your evidence at this stage. The tribunal's case management process will give you an opportunity to submit documents later. But if you have key documents that support your grounds—such as bank statements showing the correct income, or medical evidence explaining a late filing—it helps to include them early.

Payment and Postponement

An appeal does not automatically pause the requirement to pay. The rules differ depending on the type of tax.

Direct Taxes: Applying To Postpone Payment

For direct taxes, the tax HMRC says you owe remains due and payable even while your appeal is pending (section 55(2) TMA 1970). If you don't take action, HMRC can pursue collection despite your appeal.

To pause payment, you need to apply for postponement in writing within 30 days of the assessment. Your application must state how much you believe has been overcharged and why (section 55(3) TMA 1970). The amount postponed is that for which there are "reasonable grounds for believing that the appellant is overcharged."

If HMRC agrees, the disputed amount is postponed until the appeal is decided. If HMRC disagrees, the matter goes to the tribunal for determination.

Two things to note. First, the postponement application is separate from the appeal itself—you need to do both. Second, tax subject to an accelerated payment notice cannot be postponed.

Indirect Taxes: The Pay-or-Hardship Rule

For indirect taxes, the tribunal cannot progress your appeal—cannot "entertain" it, in the legislation's language—unless the disputed tax has been paid or deposited with HMRC (section 84(3) VATA 1994).

There is an exception: if paying would cause you hardship. You can apply to HMRC first, and if HMRC is not satisfied, you can apply to the tribunal (section 84(3B) VATA 1994). The tribunal's decision on hardship is final.

Here's the crucial point: don't let the payment question cause you to miss the filing deadline. You can validly file your notice of appeal without having paid the disputed amount or applied for hardship. The tribunal will accept your filing—the distinction is between "making" the appeal (filing the notice) and "entertaining" it (progressing it). File first, sort payment afterwards.

This practical point was confirmed by Judge Sinfield in the SNMP case (July 2022).

If you need to make a hardship application to the tribunal, Rule 22 of the Tribunal Procedure Rules requires you to set out your reasons and provide supporting financial documents.

What Happens After You File

Your Reference Number and Acknowledgment

If you filed online, you'll receive a reference number immediately. If you filed by post or email, the tribunal will send written acknowledgment with your reference number once the appeal is processed.

The tribunal will also send a copy of your appeal to HMRC (or whichever body made the decision). From this point, the formal process is running.

Case Categories

The tribunal will allocate your case to one of four categories under Rule 23 of the Tribunal Procedure Rules. The category determines how the case will be managed:

Default Paper — For small penalty appeals (aggregate not exceeding £500). Decided on paper without a hearing, unless either party requests one. HMRC responds within 42 days; you reply within 30 days.

Basic — For most penalty appeals above £500, late-appeal permission applications, and simpler disputes. There will be a hearing (usually by video). HMRC responds within 42 days; you reply within 14 days.

Standard — The default category for anything not allocated elsewhere. Covers substantive tax disputes. HMRC files a statement of case within 60 days. The tribunal then issues detailed directions covering document exchange, witness statements, and hearing preparation.

Complex — For cases involving lengthy or complex evidence, an important legal principle, or a large financial sum (£750,000 or more for direct taxes; £2,000,000 or more for indirect taxes). Costs rules apply—meaning the losing party may have to pay the winner's legal costs. If your case is allocated as Complex, you have 28 days to opt out of the costs rules.

The tribunal can reclassify your case at any time if the category turns out to be wrong. Our guide to case categories and costs explains each track in detail, including the costs rules and the critical 28-day Complex opt-out deadline.

HMRC's Response

For Default Paper and Basic cases, HMRC has 42 days to respond. For Standard and Complex cases, HMRC must file a statement of case within 60 days, identifying the legal basis for their decision and setting out their position (Rule 25 of the Tribunal Procedure Rules).

You will receive a copy of HMRC's response. The tribunal will then issue further directions—instructions about what needs to happen next and when.

Follow these directions carefully. Ignoring case management directions can lead to your case being struck out or to costs being awarded against you, even in categories where costs are not normally at risk.

Alternative Dispute Resolution

Once you have your tribunal reference number, you can apply for alternative dispute resolution (ADR). This is a voluntary process where an HMRC mediator—someone trained in mediation and independent of your case officer—tries to help you and HMRC reach an agreement.

ADR doesn't replace the tribunal process. Your appeal stays live while ADR is attempted. If it works, the dispute is resolved without a hearing. If it doesn't, the tribunal case continues as before.

You can read about how to apply on the GOV.UK ADR guidance page.

Cases before the tribunal take typically 6-12 months to reach a final decision. ADR, if it works, can resolve matters faster. Our guide to settling your tribunal case covers ADR in detail—including how to apply, what to expect, and who is eligible.

What Happens at the Hearing

If your case involves a hearing (Basic, Standard, or Complex), you'll appear before an independent judge—usually by video for Basic cases, and in person or by video for Standard and Complex. The tribunal will hear from both you and HMRC, consider the evidence, and make a decision. The three possible outcomes are: the appeal is allowed (you win), dismissed (HMRC's decision stands), or allowed in part (a compromise).

Our guide to preparing for your hearing covers what to expect on the day, how to prepare your evidence, and common mistakes to avoid. After the hearing, see our guide on what happens after the tribunal's decision for next steps whether you win or lose.

If You Need Help

You don't have to do this alone. Several organisations offer free help:

TaxAid — free tax advice for people on low incomes (broadly below £28,000/year). Covers most taxes, though not Corporation Tax or tax credits.
LITRG (Low Incomes Tax Reform Group) — detailed online guides written for unrepresented taxpayers, covering the tribunal process step by step.
Citizens Advice — general guidance on tax disputes and your options.
The tribunal itself — you can call 0300 303 5857 (Monday to Friday, 9am to 4pm) with procedural questions. The staff cannot give legal advice, but they can explain the process.
Form T239 — if a friend, accountant, or other non-legal representative is helping you, file form T239 to authorise them to act on your behalf.

Key Deadlines at a Glance

What	Deadline	Reference
Appeal to HMRC (direct taxes)	30 days from decision	s.31A TMA 1970
Appeal to tribunal (indirect taxes)	30 days from decision	s.83G VATA 1994
Notify tribunal after review upheld	30 days from review conclusion	s.49G TMA 1970
Respond to HMRC's review offer (direct taxes)	30 days from offer	s.49C TMA 1970
Apply to postpone tax (direct taxes)	30 days from assessment	s.55 TMA 1970
Opt out of Complex costs rules	28 days from allocation	T242 guidance
Missed a deadline?	See our guide	Late appeals