Tax Credits Act 2002 section 38

Appeals

Section 38 sets out which HMRC decisions relating to tax credits can be challenged by way of formal appeal, and explains the effect of a mandatory review on the right of appeal.

• Claimants may appeal against a wide range of HMRC decisions on tax credits, including initial decisions, revised decisions, enquiry conclusions, discovery assessments, decisions correcting official errors, penalty determinations, decisions withdrawing working tax credit following a benefit fraud conviction, and decisions charging interest on overpayments.
• Claimants may also appeal against the final "end of year" decision for a particular tax year (and any revision of that decision), which determines the claimant's actual entitlement once income and circumstances for the year are known.
• Where HMRC has carried out a mandatory review and upheld the original decision, any appeal must be made against that original decision — the claimant cannot treat the review outcome as a separate, new decision.
• Where HMRC has carried out a mandatory review and varied (i.e. changed) the original decision, the appeal must be made against the decision as varied — the claimant appeals the amended version, not the original.

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