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Taxation (UK) · The systems for self-assessment and the making of returns

Appeals, Reviews and Overpaid Tax Claims in TX-UK

Updated 11 October 2026 · Fact-checked

You appeal an HMRC decision in writing within 30 days of the decision. You can then accept an HMRC review, or ask for the First-tier Tribunal to hear the case. If you have overpaid tax, you claim repayment from HMRC within the time limit for that tax. Always check the deadline first.

Understand Appeals, Reviews and Claims for Overpaid Tax

HMRC makes decisions that affect your tax bill. It may issue an assessment, amend a return, refuse a claim or charge a penalty. You do not have to accept these. The law gives you a right to challenge them through an appeal.

An appeal starts with a written notice to HMRC. It must be sent within 30 days of the date of the decision. If you miss the deadline, HMRC may accept a late appeal if you have a reasonable excuse for the delay. Otherwise the decision stands.

Once you have appealed, you usually have three routes. You can settle the matter by agreement with HMRC. You can ask for an internal review by an HMRC officer who was not involved in the original decision. Or you can ask for the appeal to go to the First-tier Tribunal, an independent body. Appeals to the tribunal are normally made after, or instead of, a review. You must still act within the time limits.

The second topic is overpaid tax. If you pay too much tax, for example because of an error in a return, you can claim a repayment. You make the claim to HMRC within a set time limit, which depends on the tax. HMRC pays interest on overpaid tax at the rate in the tax tables you are given. The exam gives this rate as 3·50%. You need to know the process and the deadlines, not just the idea.

The exam tests this mostly through objective test questions. They ask for the deadline, the correct route, or who hears the appeal. Learn the short list of rules below and you will pick up easy marks.

Key rules to remember

Time limit to appeal
Written appeal to HMRC within 30 days of the decision
A late appeal may be accepted if you have a reasonable excuse for the delay.
Routes after an appeal
Agreement with HMRC, or internal review, or First-tier Tribunal
The review is by an HMRC officer not involved in the original decision. The tribunal is independent.
Interest on overpaid tax
3·50% (rate given in the Tax Rates and Allowances)
Use the rate you are given. Do not confuse it with 8·50% on underpaid tax.
Interest on underpaid tax
8·50% (rate given in the Tax Rates and Allowances)
This is the rate that applies when you owe HMRC, not when HMRC owes you.
Overpaid tax claims
Claim repayment from HMRC within the time limit for the tax concerned
The limit depends on the tax. Check the question for which tax and which period.

How to solve Appeals, Reviews and Claims for Overpaid Tax questions

Use this method for any question on appeals, reviews or claims for overpaid tax.

  1. 1Decide whether the question is about a decision you disagree with (appeal) or tax you have paid too much of (claim).
  2. 2For an appeal, find the date of the HMRC decision.
  3. 3Check the 30-day limit. Count from the decision date and see if the appeal is in time.
  4. 4If it is late, ask whether there is a reasonable excuse. If so, HMRC may still accept it.
  5. 5Choose the route: agreement with HMRC, internal review, or the First-tier Tribunal. Say who decides in each case.
  6. 6For an overpaid tax claim, identify the tax and apply the time limit for that tax.
  7. 7If interest is needed, pick the right rate from the tables: 3·50% on overpaid tax or 8·50% on underpaid tax.
  8. 8State your conclusion in one clear sentence that answers the exact question asked.

Quickest way: The 30-day check

When to use it: Use this for objective test questions that give a decision date and ask if an appeal is in time or what to do next.

  1. Write down the decision date.
  2. Add 30 days and note the last day to appeal.
  3. Compare with the date of the appeal. In time means valid.
  4. If late, look for a reasonable excuse in the scenario.
  5. Match the route to the wording: review means an HMRC officer, tribunal means independent hearing.

Common mistakes in Appeals, Reviews and Claims for Overpaid Tax

  • Saying the appeal deadline is 30 days from the date the taxpayer received the letter.

    Students assume it runs from when they found out about the decision.

    Fix: Count 30 days from the date of the decision, as the question states it. Use the date given.

  • Thinking a late appeal is always rejected.

    Students remember the 30-day rule and forget the exception.

    Fix: A late appeal may be accepted if there is a reasonable excuse. Look for one in the scenario.

  • Saying the internal review is carried out by the officer who made the decision.

    Students think of review as simply asking again.

    Fix: The review is by an HMRC officer who was not involved in the original decision.

  • Using 8·50% for interest on overpaid tax.

    Both rates are in the tables and look similar.

    Fix: HMRC pays 3·50% on overpaid tax. The taxpayer pays 8·50% on underpaid tax.

  • Stating one time limit for every overpayment claim.

    Students try to learn a single deadline to save effort.

    Fix: The limit depends on the tax. Identify the tax first and apply its own limit.

Worked examples

Example 1

HMRC issues Anita a penalty notice dated 10 March. Anita sends a written appeal on 5 April. Is the appeal in time? What can she do next?

Show the solution
  1. The decision date is 10 March.
  2. The 30-day period ends on 9 April (21 days left in March gives 31 March, plus 9 days in April).
  3. The appeal was sent on 5 April, which is before 9 April.
  4. So the appeal is in time.
  5. Next, Anita can agree the matter with HMRC, accept an internal review by an officer not involved in the decision, or ask for the First-tier Tribunal to hear the appeal.

Answer: The appeal is in time. Anita can settle by agreement, ask for an HMRC internal review, or go to the First-tier Tribunal.

Example 2

Raj has paid £6,000 too much income tax because of an error in his return. HMRC repays it with interest for exactly one year at the overpaid rate. How much interest does he receive, ignoring any other factors?

Show the solution
  1. Identify that the tax is overpaid, so the repayment interest rate applies.
  2. From the tax rates, the rate of interest on overpaid tax is 3·50%.
  3. Interest = £6,000 × 3·50% × 1 year.
  4. £6,000 × 0·035 = £210.

Answer: Raj receives £210 of interest.

Exam tips

  • In objective tests, the number 30 days is the most likely target. Learn it cold.
  • Read the dates in the scenario carefully. A single day can change whether an appeal is in time.
  • Know both interest rates and which direction each applies. Overpaid is 3·50%, underpaid is 8·50%.
  • In a written answer, set out the routes in order and name who decides at each stage.
  • If the question mentions a late appeal, look for a reasonable excuse before saying it fails.

Practice questions from The systems for self-assessment and the making of returns

Appeals, Reviews and Claims for Overpaid Tax: frequently asked questions

How long do I have to appeal against an HMRC decision?

You have 30 days from the date of the decision to appeal in writing. A late appeal may still be accepted if you have a reasonable excuse for the delay.

What is the difference between an HMRC review and a tribunal?

A review is carried out by an HMRC officer who was not involved in the original decision. The First-tier Tribunal is independent of HMRC and hears the appeal itself.

Can I claim back tax I have overpaid?

Yes. You claim repayment from HMRC within the time limit for that tax. HMRC pays interest on the overpaid amount at the rate given in the Tax Rates and Allowances, which is 3·50% in the exam.

Do I need to memorise the interest rates for the exam?

You are given them in the tax tables, so you do not need to memorise the numbers. You must know which rate applies to overpaid tax and which to underpaid tax.