What is a statutory review of an HMRC decision?

A statutory review is a free, internal HMRC review of a decision, conducted by an officer who was not involved in the original decision. It provides a quick way to challenge an HMRC decision without going to the Tribunal. A statutory review is a formal, internal review of an HMRC decision, conducted by a different HMRC officer (not the one who made the original decision). The review is available for most HMRC decisions, including assessments, penalties, and information notices. The process: (1) The taxpayer receives a decision from HMRC (e.g., an assessment or penalty). (2) The taxpayer can accept the decision, request a statutory review, or appeal to the Tribunal. (3) If the taxpayer requests a statutory review, HMRC assigns the case to a different officer (the 'reviewing officer'). (4) The reviewing officer reviews the original decision, considering the facts, the law, and any new evidence or arguments from the taxpayer. (5) The reviewing officer issues a review conclusion, which may uphold, vary, or cancel the original decision. (6) If the taxpayer disagrees with the review conclusion, they can appeal to the First-tier Tribunal within 30 days. The statutory review is free (no fee), and the taxpayer does not need legal representation (though it is recommended). The review is typically completed within 45 days, though there is no strict time limit. The statutory review does not affect the taxpayer's right to appeal to the Tribunal — it is an additional option that can resolve the dispute without the need for a formal Tribunal hearing. Relevant legislation: TMA 1970, Section 49B (statutory review); CRCA 2005, Section 14 (review of decisions). Example: HMRC issues an assessment for £50,000 of additional tax. The taxpayer believes the assessment is incorrect and requests a statutory review within 30 days. The reviewing officer reviews the case, considers new evidence from the taxpayer, and reduces the assessment to £20,000. The taxpayer accepts the reduced assessment, avoiding the need for a Tribunal appeal. Common mistake: Not requesting a statutory review before appealing to the Tribunal. The review is free and quick, and many disputes are resolved at this stage. Skipping the review and going straight to the Tribunal can be costly and time-consuming.

How do I request a statutory review?

Request a review within 30 days of the HMRC decision. You can request it in writing or by phone. HMRC will assign a different officer to review the decision and will typically issue a conclusion within 45 days. To request a statutory review: (1) Timing — the taxpayer must request the review within 30 days of the date of the HMRC decision (the date on the decision letter). The 30-day deadline is strict, so the taxpayer should request the review promptly. (2) Method — the taxpayer can request the review in writing (by letter or email) or by phone. HMRC's decision letter will include instructions on how to request a review. (3) Content — the request should state that the taxpayer is requesting a statutory review, identify the decision being reviewed, and (optionally) provide reasons why the decision is incorrect and any new evidence or arguments. (4) Review process — HMRC will acknowledge the request and assign the case to a reviewing officer (a different officer from the one who made the original decision). The reviewing officer will review the case, consider any new evidence or arguments, and may contact the taxpayer for additional information. (5) Conclusion — the reviewing officer will issue a review conclusion, typically within 45 days. The conclusion will state whether the original decision is upheld, varied, or cancelled. (6) Next steps — if the taxpayer agrees with the conclusion, the dispute is resolved. If the taxpayer disagrees, they can appeal to the First-tier Tribunal within 30 days of the review conclusion. Relevant legislation: TMA 1970, Section 49B (request for statutory review). Example: A taxpayer receives a penalty notice on 1 March 2026. They request a statutory review on 15 March 2026 (within 30 days). HMRC assigns a reviewing officer, who reviews the case and issues a conclusion on 20 April 2026 (within 45 days). The conclusion reduces the penalty from 30% to 15%. The taxpayer accepts the reduced penalty, avoiding a Tribunal appeal. Common mistake: Missing the 30-day deadline for requesting a review. The deadline is strict, and missing it means the taxpayer cannot request a review (though they can still appeal directly to the Tribunal, subject to the Tribunal's own deadlines).

How long does a statutory review take?

HMRC aims to complete the review within 45 days, but there is no strict time limit. The duration depends on the complexity of the case and the availability of the reviewing officer. Complex cases may take longer. The statutory review timeline: (1) 30-day request period — the taxpayer has 30 days from the date of the HMRC decision to request a review. (2) Acknowledgement — HMRC will acknowledge the request, typically within a few days. (3) Review — HMRC aims to complete the review within 45 days of the request. However, there is no statutory time limit for the review, and complex cases may take longer. (4) Conclusion — HMRC will issue a review conclusion, stating whether the original decision is upheld, varied, or cancelled. (5) 30-day appeal period — if the taxpayer disagrees with the review conclusion, they have 30 days to appeal to the First-tier Tribunal. The total timeline from the original decision to the review conclusion is typically 2-3 months (30 days to request + 45 days for the review). This is generally faster than a Tribunal appeal, which can take 6-12 months or more. If the review is taking too long, the taxpayer can contact HMRC to request an update, or they can proceed to appeal to the Tribunal without waiting for the review conclusion (if the 30-day Tribunal appeal deadline is approaching). Relevant legislation: TMA 1970, Section 49B (review timeline — no strict limit, but HMRC aims for 45 days). Example: A taxpayer requests a statutory review on 1 March 2026. HMRC acknowledges the request on 5 March 2026. The reviewing officer reviews the case and issues a conclusion on 15 April 2026 (45 days). If the taxpayer disagrees with the conclusion, they have until 15 May 2026 (30 days) to appeal to the Tribunal. Common mistake: Assuming the review will be completed within 45 days. While HMRC aims for this, complex cases may take longer, and there is no strict time limit. The taxpayer should monitor the timeline and be prepared to appeal to the Tribunal if necessary.

Should I request a statutory review or appeal to the Tribunal?

Start with a statutory review — it's free, quick, and does not affect your right to appeal to the Tribunal. If the review does not resolve the dispute, you can still appeal to the Tribunal. Many disputes are resolved at the review stage. The choice between a statutory review and a Tribunal appeal depends on the circumstances, but in most cases, it makes sense to start with a statutory review: (1) Statutory review advantages — (a) Free (no Tribunal fee, no legal representation required). (b) Quick (typically 45 days, vs. 6-12 months for a Tribunal appeal). (c) No prejudice (requesting a review does not affect the right to appeal to the Tribunal). (d) New evidence (the taxpayer can submit new evidence and arguments). (e) Settlement (many disputes are resolved at the review stage). (2) When to go straight to the Tribunal — (a) If the dispute involves a point of law that requires a Tribunal determination. (b) If the taxpayer has no new evidence or arguments and simply wants an independent decision. (c) If the taxpayer has no confidence in HMRC's internal review process. (3) Strategy — in most cases, the best strategy is to request a statutory review first. If the review upholds the original decision, the taxpayer can then appeal to the Tribunal. The review does not delay the Tribunal appeal (the 30-day Tribunal deadline runs from the review conclusion, not the original decision). The only downside of requesting a review is the additional time (45 days), but this is generally worthwhile given the high proportion of disputes resolved at the review stage. Relevant legislation: TMA 1970, Section 49B (statutory review); TMA 1970, Section 31 (Tribunal appeal). Example: A taxpayer receives an assessment for £50,000. They request a statutory review. The reviewing officer reduces the assessment to £30,000, which the taxpayer accepts. The dispute is resolved in 45 days, without the cost and delay of a Tribunal appeal. If the review had upheld the full £50,000, the taxpayer could then have appealed to the Tribunal. Common mistake: Going straight to the Tribunal without requesting a statutory review. The review is free, quick, and resolves many disputes. Skipping it can result in unnecessary costs and delays.

Can I submit new evidence during a statutory review?

Yes. During a statutory review, you can submit new evidence and arguments that were not available during the original decision. The reviewing officer will consider all evidence, including new evidence, when reviewing the decision. During a statutory review, the taxpayer can submit new evidence and arguments: (1) New evidence — the taxpayer can provide evidence that was not available or not submitted during the original decision. This includes documents, witness statements, expert reports, and legal arguments. (2) Reasons — the taxpayer can provide reasons why the original decision is incorrect, pointing to errors of fact or law. (3) Reviewing officer's role — the reviewing officer considers all evidence, including the new evidence, and makes a fresh assessment of the decision. The reviewing officer is not bound by the original decision-maker's conclusions. (4) No restrictions — there are no restrictions on the type or amount of new evidence that can be submitted. However, the taxpayer should be selective and focus on the most relevant and persuasive evidence. (5) Timing — the new evidence should be submitted as early as possible in the review process, to give the reviewing officer time to consider it. The ability to submit new evidence is one of the key advantages of a statutory review — it allows the taxpayer to strengthen their case without the formality and cost of a Tribunal hearing. Relevant legislation: TMA 1970, Section 49B (statutory review — consideration of new evidence). Example: A taxpayer receives a penalty for a careless error. During the original investigation, the taxpayer did not provide evidence that they had taken reasonable care. During the statutory review, the taxpayer submits evidence (e.g., a checklist, training records, adviser correspondence) showing that they took reasonable care. The reviewing officer considers the new evidence and cancels the penalty. Common mistake: Not submitting new evidence during the statutory review. The review is an opportunity to present additional evidence and arguments. Failing to do so may result in the original decision being upheld, when the new evidence could have changed the outcome.

Tax Disputes › Appeals

Statutory Reviews of HMRC Decisions

A statutory review is a free, internal HMRC review of a decision. Understand when it applies, the 30-day process, the benefits, and how it compares to a Tribunal appeal.

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A statutory review is an internal HMRC review of a decision, conducted by an HMRC officer who was not involved in the original decision. It provides a free and relatively quick way to challenge an HMRC decision without going to the Tribunal. Understanding the statutory review process and when to use it (vs. a Tribunal appeal) is essential for resolving disputes efficiently.

When a Statutory Review Applies

A statutory review applies to most HMRC decisions, including: (1) Assessment decisions (e.g., assessments, determinations, discoveries). (2) Penalty decisions. (3) Information notice decisions. (4) Other decisions listed in the legislation. The taxpayer can request a statutory review after rejecting the original decision. The review is conducted by a different HMRC officer (not the one who made the original decision).

The 30-Day Process

The statutory review process: (1) Request — the taxpayer requests a review within 30 days of the original decision. (2) Review — HMRC conducts the review, typically within 45 days (though there is no strict time limit). (3) Conclusion — HMRC issues a review conclusion, which may uphold, vary, or cancel the original decision. (4) Appeal — if the taxpayer disagrees with the review conclusion, they can appeal to the First-tier Tribunal within 30 days.

Benefits of a Statutory Review

Benefits of a statutory review: (1) Free — there is no cost (unlike a Tribunal appeal, which may involve legal fees). (2) Quick — the review is typically completed within 45 days, faster than a Tribunal appeal. (3) No prejudice — requesting a review does not affect the taxpayer's right to appeal to the Tribunal. (4) New evidence — the taxpayer can submit new evidence and arguments during the review. (5) Settlement — many disputes are resolved during the statutory review, avoiding the need for a Tribunal appeal.

Statutory Review vs Tribunal Appeal

The choice between a statutory review and a Tribunal appeal depends on the circumstances: (1) Statutory review — free, quick, internal HMRC review. Suitable for disputes where the taxpayer has new evidence or arguments that may persuade HMRC. (2) Tribunal appeal — involves a formal hearing, legal representation, and potential costs. Suitable for disputes where the taxpayer wants an independent decision. The taxpayer can request a statutory review first and, if unsatisfied, appeal to the Tribunal. In many cases, the statutory review resolves the dispute without the need for a Tribunal appeal.

Key Points

What You Need to Know

A statutory review is a free, internal HMRC review of a decision
The taxpayer must request a review within 30 days of the original decision
The review is conducted by a different HMRC officer (not the original decision-maker)
HMRC typically completes the review within 45 days
If unsatisfied, the taxpayer can still appeal to the Tribunal after the review

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HMRC Self-Assessment Enquiries Code of Practice 8 (COP8)Code of Practice 9 (COP9)HMRC Penalties Statutory Reviews of HMRC Decisions First-tier Tribunal (Tax Chamber)Alternative Dispute Resolution (ADR)Worldwide Disclosure Facility (WDF)HMRC Nudge Letters HMRC Offshore Disclosure Campaigns HMRC Discovery Assessments HMRC Information Notices Corporate Criminal Offence: Failure to Prevent Tax Facilitation VAT Disputes & Tribunals IR35 & Off-Payroll Working Disputes Transfer Pricing Disputes

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