Receiving a penalty notice from HMRC can be stressful, but it is important to remember that you have the legal right to appeal if you believe the penalty is unfair or incorrect. This guide explains the process and what HMRC considers a “reasonable excuse.”
The 30-Day Deadline
If you disagree with a penalty, you usually have 30 days from the date on your penalty decision letter to appeal.
If you miss this 30-day deadline, you can still appeal, but you will need to provide a good reason for the delay alongside your actual appeal.
What Counts as a “Reasonable Excuse”?
To successfully appeal a penalty for a late return or late payment, you must provide a “reasonable excuse.” HMRC defines this as something unexpected or outside your control that stopped you from meeting your tax obligation.
Examples of what HMRC may accept as a reasonable excuse:
•The death of a partner or close relative shortly before the deadline
•An unexpected stay in hospital or a serious, life-threatening illness
•A fire, flood, or theft that prevented you from completing your return
•Computer or software failure while you were preparing your online return
•Issues with HMRC’s own online services
•Unpredictable postal delays
Examples of what HMRC will NOT accept:
•You found the HMRC online system too difficult to use
•You did not receive a reminder from HMRC
•You made a mistake on your tax return
•Your cheque bounced or your payment failed because you did not have enough money
•You relied on someone else (like an accountant) to file for you, and they failed to do so
Note: Even if you have a reasonable excuse, you must file your return or make your payment as soon as you are able to.
How to Make Your Appeal
The way you appeal depends on the type of tax:
For Self Assessment and Direct Taxes:
Your penalty letter will usually include an appeal form. If it does not, you can send a signed letter to the HMRC office address on the notice. You must include your name, your Unique Taxpayer Reference (UTR), and a clear explanation of why your return or payment was late, including relevant dates.
For VAT and Indirect Taxes:
HMRC will usually offer you a review in your penalty decision letter. The quickest way to accept this offer and challenge the penalty is through your VAT online account.
What Happens Next?
If HMRC accepts your appeal, they will cancel the penalty.
If they reject your appeal, you can ask for an internal review by a different HMRC officer. If you still disagree after the review, your final option is to appeal to an independent tax tribunal.
This guide is for information purposes only and was last updated in May 2026. For the most current information and specific appeal forms, always check the official GOV.UK guidance on tax appeals.