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ACCA Applied Skills · Taxation (UK) · The procedures relating to compliance checks, appeals and disputes

Which statement about applying to postpone payment of tax pending an appeal is correct?

The postponement application must state how much tax the taxpayer thinks is overcharged and why. Only disputed tax can be postponed, it is not automatic on lodging an appeal, and HMRC need not simply agree, since disagreement is referred to the tribunal.

  1. APostponement can be claimed for any tax, including tax not in dispute
  2. BThe application must state the amount of tax the taxpayer believes is overcharged, and the grounds for believing soCorrect
  3. CPostponement automatically applies as soon as an appeal is lodged
  4. DHMRC must always accept the postponement request without question

Explanation

A postponement application must state the amount the taxpayer believes is overcharged and the reasons. Only the disputed tax can be postponed, and postponement is not automatic on appeal. If HMRC and the taxpayer disagree, the matter can be referred to the tribunal.

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