Publication date: 06.02.2026
My name is Irina Sidorova and I am a lawyer based in London. I have over 18 years of experience in law and prior to moving to the UK I specialized in litigation, corporate support, contract analysis and drafting, and commercial legal support. My expertise includes a detailed analysis of legislative changes and their effective application to protect clients' interests. Thanks to my strategic approach, knowledge of the law and practical experience, I help to avoid legal risks and achieve stability in legal matters.
The process of interacting with HMRC regarding fines and issues related to double taxation has its own specifics, depending on the type of violation, the taxpayer’s status, and the timeliness of submitting tax returns. Taxpayers in the United Kingdom—both individuals and companies—do not always automatically have the right to appeal if fines are imposed. Minor violations or technical errors may allow HMRC to offer voluntary resolution. In cases of serious violations—late submission of tax returns, incorrect reporting of income, or late payment of taxes—fines are applied automatically, and the appeal process requires strict adherence to HMRC rules.
Question
How does the process of fine assessment and appeal work in the United Kingdom?
Answer
If an individual or company receives a notice from HMRC regarding fines, it is necessary to carefully analyze the reason and amount of the fines. HMRC determines the amount based on the type of violation, annual turnover, and tax history. The procedure includes:
- Reviewing submitted tax returns and provided data;
- Analyzing deadlines for submitting tax returns and the timeliness of income and tax payments;
- Receiving a written notice from HMRC explaining the assessed fines;
- Determining the possibility of voluntary settlement or installment payment of the fines;
- Initiating the appeal process if the taxpayer disagrees with HMRC’s decision.
For taxpayers with international operations or high annual turnover, it is often recommended to consult a tax advisor to assess risks and prepare documentation for a formal appeal.
Important documents to have on hand
- For an effective appeal of HMRC fines, it is necessary to prepare:
- Tax returns and documents confirming income and tax payments;
- Proof of timely submission of tax returns and bank statements;
- Correspondence with HMRC confirming previous communications;
- Explanations for late submission or errors in the tax returns;
- Documents from a tax advisor (if consultation was conducted).
Properly prepared documents allow not only to appeal fines but also to avoid additional interest charges and repeated assessments.
Answer
What should be done if you disagree with an HMRC decision?
Answer
If an individual or company believes that fines were applied unfairly, they can:
- Consult a tax advisor to evaluate the situation;
- Submit an appeal directly to HMRC;
- Provide supporting documents verifying the accuracy of tax returns and income;
- Keep internal records of all communications with HMRC;
- If necessary, challenge the decision through official appeal procedures, including the tax tribunal.
- Timely action helps minimize financial risks and prevents further increases in fines.
Important to know
Fines from HMRC are particularly relevant for:
- Individuals engaged in business activities or receiving income from foreign sources;
- Companies with international contracts and sales in the United Kingdom;
- Taxpayers who fail to meet deadlines for submitting tax returns or paying taxes.
- Incorrectly completed tax returns, late tax payments, or lack of proof of tax status can result in significant financial sanctions. Regular monitoring of income, consultation with a tax advisor, and timely submission of tax returns help avoid issues with HMRC.
Compliance with tax accounting rules and timely responses to HMRC fines establish tax discipline and help maintain financial stability. Consulting a tax advisor assists in preparing all tax returns, collecting supporting documents for income, properly appealing HMRC decisions, and minimizing tax risks in the United Kingdom.
