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HMRC internal manual

Compliance Operational Guidance

Alternative rights of recovery (PAYE directions): primary class 1 NICs: appeals: overview

This section should be read in conjunction with COG932810 and the Appeals, Review & Tribunal Guidance (ARTG).

Notice of Decision

In the Notice of Decision a person is told that HMRC has made a decision, which carries with it a right of appeal.

Grounds for Appeal and Time Limits

The grounds for appeal and the time limits are the same as for those against directions (see COG932820). Therefore, you should consider any appeal received against such a direction as an appeal against a decision that includes the same relevant payments. 

Suspension of Decision

When an appeal is received the decision must be suspended pending resolution. This includes collection of any amount due.

Appeals outcome


At the same time as settling an appeal against a direction under Section 54 Taxes Management Act 1970 (see COG932830) you may also be able to settle an appeal against a decision by agreement under Regulation 11 Social Security Contributions (Decisions & Appeals) Regulations 1999. This may result in

  • withdrawal of the appeal
  • a varied decision.

COG932740 provides further guidance on how to notify NIC&EO.


A decision, which is under appeal, may be varied at any time before the Tribunal Service determine it but only if the appeal is settled at the same time.

Where an appeal cannot be settled by agreement, you should proceed as in COG932840 onward.   

Guidance on varying a decision as a result of the Tribunal’s decision can be found at COG932760.

Decision Status

You must notify NIC&EO on a Section 8 report form of

  • any change to the status of a decision (COG932680 refers)
  • any amount of contribution that is to be reinstated (see COG932700).