Late Appeal to Tax Tribunal

Late Appeal to Tax Tribunal

Making a late appeal to the Tax Tribunal is very difficult without a good excuse and exceptional reasons. Appeals require careful wording and proper reference to the relevant case law.

The Five Principles

Lord Drummond Young’s judgment in Advocate General for Scotland v General Commissioners for Aberdeen City [2006] STC 1218 outlines five principles that the Tribunal will consider when deciding whether to admit a late appeal:

1. Reasonable Excuse – The appellant must demonstrate a reasonable excuse for the failure to appeal within the permitted time limit. The Tribunal will examine the circumstances carefully and will not accept vague or unsupported explanations.

2. HMRC’s Role in the Delay – The Tribunal will consider whether HMRC contributed to or caused the delay. If HMRC’s own actions or failures played a part, this weighs in the appellant’s favour.

3. Reasonable Expedition Once the Excuse Ceased – Once the reasonable excuse came to an end, did the appellant act promptly to lodge the appeal? Continued delay after the excuse has passed will count against the appellant.

4. Prejudice Assessment – The Tribunal will assess the prejudice to both parties. What harm would be caused to the appellant by refusing the late appeal, and what harm would be caused to HMRC by admitting it?

5. Public Interest Considerations – The Tribunal will take into account the wider public interest, including the importance of finality in tax proceedings and the efficient administration of the tax system.

Important Note

While a Tribunal appeal may delay HMRC’s debt recovery actions, this alone does not justify a late appeal. The Tribunal will look at the substantive merits and the reasons for the delay, not merely the tactical advantage of obtaining a stay on enforcement.

Professional advice is essential when considering a late appeal, as the wording of the application and the supporting evidence can make the difference between success and failure.