Appealing against a penalty

Traders can appeal to HM Revenue & Customs (HMRC) against a penalty. Appealing against a customs penalty decision is a two-step process, and is the same for customs and excise breaches.Departmental review If traders decide to appeal against an HMRC decision, they need to request a departmental review. This will be carried out by a local review officer who will review the case and decide to vary, uphold or reverse the original decision.

Traders have 45 days to request a departmental review following the original HMRC decision. HMRC then have 45 days to carry out the review. If a trader is still unhappy following the review, they have a further 30 days to lodge an appeal with the VAT and Duties Tribunals.

Appeals to the VAT and Duties TribunalsThe VAT and Duties Tribunals normally hear cases in London, Manchester and Edinburgh. However, hearings can be held in other parts of the UK, including Northern Ireland. If possible, the Tribunals will try to arrange the appeal hearing not further than 50 miles from where a trader lives.


Hearings are informal and traders may present their own case or choose to be represented.Each hearing has a legally qualified chairman who may be accompanied by one or two lay members with particular expertise, such as an accountanThe paperwork involved in lodging an appeal with the Tribunals is colour coded. It's important that traders complete the correct documents. The regional offices in London, Manchester and Edinburgh provide comprehensive leaflets. Traders should contact their nearest office to ask for advice before lodging an appeal