HMRC rejected your penalty appeal: what now? (Review and tribunal)
Having a penalty appeal rejected by HMRC feels final, but it usually isn't. There are two further routes, both free. First, a statutory review, a fresh look by an HMRC officer not involved in the original decision, usually requested within 30 days. Second, an appeal to the independent First-tier Tribunal (Tax), again generally within 30 days. To strengthen a second attempt, address the specific reason your first appeal failed rather than repeating it.
Written by the team behind Agent Arthur, our HMRC and tax specialist. This guide is general information about UK law, reviewed for accuracy.Two free routes after a rejection
Having a penalty appeal rejected by HMRC feels final, but it usually isn't. There are two further routes, both free, and it is worth understanding them before giving up.
The first is a statutory review. This is a fresh look at your case by an HMRC officer who was not involved in the original decision. You typically have 30 days from the rejection to request it. It is low-effort and sometimes overturns the first decision, particularly where the original officer may have underweighted your evidence.
The second is an appeal to the First-tier Tribunal (Tax), which is independent of HMRC. You can go here instead of, or after, a statutory review, again generally within 30 days of the relevant decision. The tribunal is a genuinely neutral body, and reasonable-excuse cases are often heard fairly. Many appellants represent themselves without a lawyer.
How to strengthen a second attempt
To strengthen a second attempt, address the specific reason your first appeal failed. HMRC's rejection letter should explain why. If it was rejected for lack of evidence, gather what was missing: a GP or hospital letter, a screenshot of an HMRC system error, or a document confirming a bereavement. If the timeline was the issue, be clearer about when your reasonable excuse ended and how promptly you then acted.
Keep everything factual, dated, and concise. Show that the event was genuinely outside your control, that it directly caused the delay, and that you put things right as soon as you reasonably could once it passed.
Watch the 30-day windows
Deadlines matter at every stage, so act within the 30-day windows wherever possible; late escalation is sometimes allowed with a good reason, but is harder.
Answer HMRC's stated reason head-onArthur drafts a review request or tribunal submission that squarely answers HMRC's stated reason for rejection, rather than repeating the first appeal. That is what moves cases forward.£5 launch price (normally from £19.99)Start my appeal letterCommon questions
Is a rejected appeal the end of the road?
Usually not. There are two further routes, both free: a statutory review by an HMRC officer not involved in the original decision, and an appeal to the independent First-tier Tribunal (Tax). It is worth understanding both before giving up.
What is a statutory review?
A fresh look at your case by an HMRC officer who was not involved in the original decision. You typically have 30 days from the rejection to request it. It is low-effort and sometimes overturns the first decision, particularly where the original officer may have underweighted your evidence.
What is the First-tier Tribunal, and do I need a lawyer?
It is an appeal body independent of HMRC. You can go there instead of, or after, a statutory review, generally within 30 days of the relevant decision. It is a genuinely neutral body, reasonable-excuse cases are often heard fairly, and many appellants represent themselves without a lawyer.
How do I improve my chances the second time?
Address the specific reason your first appeal failed rather than repeating it. HMRC's rejection letter should explain why. If it was rejected for lack of evidence, supply what was missing. If the timeline was the issue, be clearer about when your excuse ended and how promptly you then acted.