In this Blog, our tax partner Andy Lynch looks at late HMRC Tax Tribunal appeals and the impact they can have.
Overview of tax appeal time limits
Missing an HMRC appeal deadline does not always mean the end of the road. While tax appeal time limits are strictly enforced, recent case law has shown a more balanced and realistic approach where fairness requires it. The Upper Tribunal’s decision in Medpro v HMRC has softened the previously rigid framework established in Martland and clarified when late appeals may still be heard.
In this Blog, our head of tax and former HMRC investigator, Andy Lynch, explains the current legal position and sets out the practical options available if you are out of time to appeal an HMRC decision.
What are the time limits for appealing an HMRC decision?
In most tax cases, a taxpayer has 30 days to appeal an HMRC decision to the First-tier Tribunal. This applies to assessments, penalty decisions, and many determinations made under the Taxes Acts.
- The tribunal has the power to allow a late appeal, but this discretion is not exercised lightly.
- A taxpayer who misses the deadline must apply for permission to appeal out of time and explain the reasons for the delay.
Historically, tribunals have placed significant weight on the importance of finality and certainty in tax administration. That remains the starting point, but it is no longer the end of the analysis. HMRC appeal deadlines are short and important, but missing them is not always fatal.
Why were late appeals so difficult under the Martland principles?
For many years, tribunals applied the guidance set out in Martland v HMRC. That case established a structured approach to late appeals, focusing on whether the application was made promptly after the deadline, whether there was a good reason for the delay, and the overall need for finality.
- In practice, this led to a strict approach. Even short delays were often refused if the taxpayer could not point to a compelling reason, such as serious illness or events genuinely outside their control.
- While this approach promoted certainty, it was criticised for being overly rigid and for failing to give sufficient weight to the merits of the underlying appeal or the broader circumstances of the case.
FWJ Takeaway: Under Martland, tribunals prioritised finality, often at the expense of fairness.
How did Medpro v HMRC change the tribunal’s approach?
The Upper Tribunal’s decision in Medpro v HMRC marked an important shift. The court emphasised that tribunals must take a holistic approach when deciding whether to admit a late appeal, considering all relevant circumstances rather than applying a rigid checklist.
- While promptness and reasons for delay remain important, Medpro confirmed that these factors are not determinative.
- Tribunals are entitled to weigh the merits of the appeal, the consequences of refusing permission, and the absence or presence of prejudice to HMRC.
- Importantly, the Upper Tribunal did not suggest that deadlines should be treated lightly. Instead, it clarified that fairness and proportionality must inform the exercise of discretion.
Medpro softened the rigid Martland framework by requiring a balanced assessment of all the circumstances.
When is a late HMRC appeal still likely to succeed?
There is no guaranteed formula, but certain factors now carry more weight following Medpro. Short delays, particularly where the taxpayer acts quickly once the issue is identified, are more likely to be excused.
- The reasons for delay remain important, but tribunals are now more willing to consider the reality of complex tax disputes, professional reliance, and genuine misunderstanding, especially where there is no evidence of deliberate non-compliance.
- The merits of the appeal can also be relevant. Where the underlying appeal raises serious or arguable points, tribunals may be reluctant to shut it out purely on procedural grounds. Prejudice to HM Revenue & Customs is another factor, particularly where admitting the appeal would not disrupt ongoing compliance or collection.
Success depends on context, including the length of delay, the explanation given, and the strength of the underlying case.
Our expert tax disputes team has 25 years’ experience advising people in appeals. We can help you too.
What are your options if HMRC refuses to accept a late appeal?
If HMRC rejects a late appeal, the tribunal, not HMRC, has the final say. Taxpayers can apply directly to the tribunal for permission to proceed out of time, supported by evidence and submissions addressing the relevant factors.
In some cases, judicial review may be appropriate, particularly where HMRC has acted unreasonably or applied the law incorrectly. Settlement discussions or alternative dispute resolution may also offer pragmatic routes to resolution, even where procedural issues arise.
The key is not to assume that a refusal is the end of the matter. Strategic advice can help identify the most effective next step. A refused late appeal is not always the end of the road, but swift action is essential.
Our final thoughts
The law on late HMRC appeals has not become permissive, but it has become more balanced. Medpro v HMRC confirms that tribunals must consider fairness alongside finality, giving taxpayers a realistic opportunity to be heard where justice requires it.
For taxpayers facing missed deadlines, early advice is critical. The way a late appeal is presented can make a decisive difference. Contact Andy Lynch today for a free no obligation consultation.
