ARTG2190 - Reviews and appeals for direct taxes: Appealing against a decision: Telling the customer of the decision

In many cases we will tell the customer of our decision by sending them a computer generated notice, such as an assessment, fixed penalty notice, determination, amendment or closure notice.

If we do not send a computer generated notice we must tell the customer of our decision by sending them a decision letter.

The customer's right of appeal is against the decision contained in the notice of decision, that is, the notice of assessment, penalty notice, determination etc or decision letter, as appropriate.

If we send the customer a computer generated notice, it is good practice to also send them a letter of explanation, see below.

Decision letters

In the decision letter the decision maker should usually

• explain to the customer

• • what they believe the facts to be
  • what the decision is
  • the reason for their decision
  • the law supporting that decision
  • the tax they believe to be due, if appropriate
  • what will happen if they do not hear from the customer within the time limit.

• Tell the customer of their rights if they disagree, including

• • their right of appeal
  • their right to a review of HMRC's decision
  • their right to apply for postponement, see ARTG2510 
  • the relevant time limits, see ARTG2180 and ARTG4240 
  • where to get further information, including contacting HMRC for further clarification if required.

Including this information will help make sure that customers and their agents understand the decision we have made, the reason and legal basis. The decision maker should bear in mind, particularly where the customer is unrepresented, that their letter should be clear and easy to understand even if referring to legislation.

If the decision letters are properly worded and the customer subsequently asks for a review of the decision, see ARTG4000 onwards, the review officer should easily be able to identify from the decision letter

• the decision they are required to review
• the facts on which the decision maker relied
• the decision maker's reasoning, and
• the relevant legislation.

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Explanation letters

In the explanation letter they should usually explain to the customer

• what they believe the facts to be
• what the decision is
• the reasons for their decision
• the law supporting that decision
• the tax they believe to be due, if appropriate
• what will happen if the do not hear from the customer within the time limit.

This information will help make sure that the customers and their agents understand the decision we have made, the reasons and the legal basis. The decision maker should bear in mind, particularly where the customer is unrepresented that their letter should be clear and easy to understand even if referring to legislation.

If explanation letters are properly worded and the customer subsequently asks for a review of the decision, see ARTG4000 onwards, the review officer should easily be able to identify from the explanation letter

• the decision they are required to review
• the facts on which the decision maker relied
• the decision maker's reasoning, and
• the relevant legislation.

Where the decision maker is notifying the customer of a decision following a penalty warning letter, see EM5207b.

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Accountancy issues

Where HMRC intends to allege that the accountancy in a case is wrong, the decision maker should submit the case to the Compliance Accountant for their business unit, see 'Where can I find help from a Compliance Accountant ' for advice before issuing the decision letter.