Appealing VAT Penalties

Q: How long do I have to appeal a VAT penalty?

You have 30 days from the date of the penalty notice to request an HMRC statutory review or appeal directly to the First-tier Tribunal (Tax).

Key facts

You have 30 days from the penalty notice to appeal.
First option: ask HMRC for a statutory review.
Second option: appeal directly to the First-tier Tribunal (Tax).
A reasonable excuse (e.g. serious illness, bereavement) may get a penalty cancelled.

Grounds for Appeal

You can appeal a VAT penalty if you have a reasonable excuse for the late filing or payment. HMRC accepts excuses such as:^[2]

Serious illness or hospitalisation
Bereavement of a close family member
Fire, flood, or other disaster
HMRC service issues or IT outages
Postal delays (for paper returns)

What is not a reasonable excuse: relying on a third party (unless they let you down unexpectedly), lack of funds (usually), or not knowing the deadline.

Step 1: Request an HMRC Review

Within 30 days of the penalty notice, you can ask HMRC for a statutory review. A different officer (not the one who made the original decision) will review your case.^[1]

Step 2: Appeal to the Tribunal

If the review upholds the penalty, you can appeal to the First-tier Tribunal (Tax). You can also skip the HMRC review and go directly to the tribunal.^[3]

File your appeal within 30 days of the review decision
The tribunal hearing is usually held at a regional venue
Most VAT penalty appeals are heard as “basic” cases (simpler process)

Tip: Act quickly. The 30-day time limit is strict. If you miss it, the tribunal may refuse to hear your appeal unless you have a very good reason for the delay.

Frequently Asked Questions

How long do I have to appeal a VAT penalty?

You have 30 days from the date of the penalty notice to request an HMRC statutory review or appeal directly to the First-tier Tribunal (Tax).

What counts as a reasonable excuse for a late VAT payment or return?

HMRC accepts excuses such as serious illness, bereavement, fire, flood, or HMRC IT outages. Lack of funds, not knowing the deadline, or relying on a third party are generally not accepted.

Can I appeal a VAT penalty directly to the tax tribunal?

Yes. You can either ask HMRC for a statutory review first or skip that step and appeal directly to the First-tier Tribunal (Tax) within 30 days.

What happens during an HMRC statutory review of a VAT penalty?

A different HMRC officer — not the one who issued the penalty — reviews your case independently. They will either uphold, vary, or cancel the original penalty decision.

Sources

Disagree with a tax decision or penalty — GOV.UK
Reasonable excuse for late filing or payment — GOV.UK
First-tier Tribunal (Tax) — GOV.UK