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HMRC internal manual

Compliance Operational Guidance

From
HM Revenue & Customs
Updated
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Alternative rights of recovery (PAYE directions): primary class 1 NICs: appeals: action where appeal settled

An appeal settled by agreement under Regulation 11 Social Security Contributions (Decisions & Appeals) Regulations 1999, may result in either

  • the appeal being withdrawn, or
  • a varied decision.

It is important that you properly account for either outcome.

Appeal withdrawn

If the appeal is withdrawn, either verbally or in writing, where a charge has already been created you should

  • cancel the stand-over on SAFE for the amount to be released
  • notify NIC&EO on a Section 8 report form the change in decision status, who will amend the NIRS2 record (COG932680 refers)
  • notify DMB that the amount stood-over is to be released where the NIC charge has been referred to them.

You should make sure that there is written confirmation of the withdrawal.

Decision varied

If, by agreement, the amount of primary Class 1 NIC included in the decision is varied because new information shows that the decision was no longer valid because it was based on inaccurate or incorrect information, you should

  • obtain approval from the SO authorised officer to vary the decision.

Then issue a

  • revised Notice of Decision, which includes the agreed amounts
  • covering letter stating ‘The Decision issued on [date] is varied in accordance with the agreement to the Notice of Decision enclosed’ and confirming
    • the terms of the agreement
    • that the appeal has been determined under Regulation 11 Social Security Contributions (Decisions and Appeals) Regulations 1999. 

Where the appeal was late and any charge has been stood-over you should

  • amend the charge on SAFE for the amount stood-over to be released/discharged
  • notify DMB of the amounts stood-over that are to be released/discharged where the charge has been referred
  • notify NIC&EO on Section 8 report form
    • the change in decision status (COG932680 refers), and
    • where the amount of NIC included in a decision is reduced, any amount of contribution that is to be reinstated on to the NIRS2 record (see COG932700).

‘Decision erroneous’

Where new information shows that a decision is longer valid because it was based on inaccurate or incomplete information and, by agreement, you withdraw the decision, you must

  • send an explanatory letter in accordance with the agreement
  • amend the charge on SAFE where a charge has already been created
  • notify DMB where the NIC charge has been sent for local action
  • send notification to NIC&EO on Section 8 report form of
    • the change in decision status (COG932680 refers)
    • the amount of contribution to be reinstated on the NIRS2 record (see COG932700).