Challenging an HMRC decision

Can you please explain how we can challenge the HMRC decisions in respect of the treatment of the running of houses in multiple occupation as an investment activity when we consider it to be a very active business. I have run both HMOs and Holiday lets. HMOs are no less time consuming than holiday lets but are treated as investments whereas holiday lets are treated as business. Is there a process for this or do we begin the challenge starting with our MPs?

Hi,
Please either put your request in writing addressed to:
HMRC,
BX9 1AS  
Or alternatively, contact our Self Assessment team.
Self Assessment: general enquiries
Thank you.

Not HMRC...you can try, but it will likely fail. HMO's are subject to Council Tax not Business Rates, as such they are residential properties and kept separately from trades. In addition, the income is rent. Also, I beleive this has already been tested in court so precedent has already been set, though Im stuggling to find the tax case. You would need to appeal, then ask for a review, then take it through the various appeal court tiers. If you are successful please post here as you will completely change the whole basis of the sector (and the entire principle of property/trade taxation)...hence why it will likely fail.