Expats disagreeing with their UK tax assessments will soon be able to appeal decisions online instead of pursuing a face-to-face tribunal hearing.
A new digital service under test by the Ministry of Justice aims to speed up the tax tribunal process – but at a cost to taxpayers.
For the first time, the tribunal will impose a fee based on the amount of money under dispute.
The MoJ is tight-lipped about how much the service will cost but promises to publish the details during the first three months of 2017.
“The online service is an alternative to the current system. We will be introducing fees for the first time. The amount will depend on the penalty or the size of the case. It is the administration fee for the tax tribunal, for sending documentation to the tribunal. On the old system, there were no fees.
Fees charged for first time
“On the online system there will be an explanation of the choices before staring the procedure, it will explain the fees, and there will be notes to make sure taxpayers are in time to appeal.
“It is very straightforward. We want to make sure it is easy to use. When you start the process, you pay the fee within the same online transaction.”
Taxpayers will still have the current paper-based system to appeal a dispute to a tax tribunal.
The tribunal will be run by the MoJ and rulings will be made by an independent judge.
The MoJ wants volunteers to test the system online.
To take part, email the MoJ.
Years of complaints
The move to take tribunal disputes online follows years of complaints from taxpayers and accounting professionals as backlogs for hearing reached record levels.
Almost 30,000 cases were queued for a hearing before the firsts-tier tax tribunal at the end of the 2014-15 tax year, the last period official figures are available for. Another 310 cases were waiting for an appeal before the Upper Tribunal.
The delays in deciding cases were put down to HM Revenue and Customs (HMRC) demanding more up-front payments from taxpayers allegedly sheltering money in tax avoidance schemes.
The tax tribunals deal with a wide range of tax issues – from VAT and corporation tax for business to income tax and capital gains tax for individuals.
