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HMRC internal manual

Appeals reviews and tribunals guidance

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HM Revenue & Customs
Updated
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First-tier and Upper Tribunals: Preparing for tribunal: Multiple parties and / or multiple appeals: NICs, statutory payments or employment status decisions

Where the decision maker issues a decision under s 8 Social Security Contributions (Transfer of Functions, etc.) Act 1999 or Article 7 of the NI Order, where workers / employees are involved, usually both the engager/employer and workers/employees are named in the decision and all those named have a right of appeal.

Where six or less workers / employees are affected by a decision, the decision maker must notify all the affected workers / employees and the engager / employer of the decision. The notification of the decision to each person will only show their own details - details of the other people affected by the decision are not shown for confidentiality reasons.

Each worker / employee could exercise their right of appeal by appealing at different times, subject to the time limit for appeal.

If some or all of the parties to these decisions appeal to HMRC, and more than one subsequently notifies their appeal to the tribunal, the tribunals caseworker should apply to the tribunal for a direction that the appeals be heard together (rule 5(3)(b)) and for those workers / employees that have not appealed to be joined to the appeal(s). This is because the outcome of any appeals may affect them.

Where more than six workers / employees are affected by the decision, the decision maker should notify the decision to the engager/employer and a representative sample of workers/employees. For more guidance about sending decisions in these cases, see DANSP41000.

If some or all of the parties to the decision appeal to HMRC, and more than one subsequently notifies their appeal to the tribunal, the tribunals caseworker should apply to the tribunal for a direction that the appeals be heard together (rule 5(3)(b)). When providing the statement of case to the tribunal, the tribunals caseworker should provide a list of all workers / employees affected by the decision, including those who have left the engager / employer. The list should not be restricted to the employees / workers included in the representative sample, it must cover all employees/workers who could be affected by the appeal. The list should show which of those workers / employees were notified of the decision, and when, and who has appealed to HMRC and, if known, who has notified their appeal to the tribunal.

Example

Local Compliance establishes that an allowance was paid to 50 workers which the employer did not include in their gross pay for Class 1 NICs. Local Compliance decides that Class 1 NICs are due but the employer does not agree. A representative sample of 3 employees is agreed with the employer and notices of decision are sent to the employer and three employees. The employer sends an appeal to HMRC against the decision but none of the employees appeal. The employer subsequently notifies their appeal to the tribunal.

When providing a statement of case to the tribunal, the tribunals caseworker should include a list with details of all 50 workers including those 3 employees named in the decisions.

A worker / employee who was not included in the representative sample can ask the decision maker for a decision, against which they will have the right of appeal, irrespective of the outcome of the proceedings relating to the representative sample of workers / employees.

The engager / employer can also ask for a decision relating to any worker / employee not included in the representative sample and will have the right of appeal against that decision.