Taxpayers Beat Taxman In Reviews

14th December 2017.

More than half of disputes between taxpayers and HM Revenue and Customs are found against the tax man, official data shows.

HM Revenue & Custom’s annual report has revealed how more than half of disputes between taxpayers and HMRC are found against the Revenue

The report disclosed that 52 percent of cases reviewed in the past year were upheld in favour of taxpayers.

When taxpayers disagree with a decision they have the option of asking HMRC to review the case, appealing to a tax tribunal, or both. However, in most cases,  reviews are a quicker way to resolve disputes.

Furthermore, overall number of reviews has increased, from 27,000 to 29,500, with two-thirds of VAT penalties, being thrown out by HMRC after concluding it shouldn’t have been issued in the first place.

The revenue’s success rate is far higher where cases are taken to a tribunal or court. The data found that 84 percent of appeals to the “first tier” tribunal went in HMRC’s favour.