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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): regulation 72(5) condition B / regulation 81(4) condition A or B: appeals process: general

This section should be read in conjunction with the Appeals, Reviews and Tribunals Guidance (ARTG). From 1 April 2009, a unified tribunal structure will handle all HMRC tax appeals and customers will be legally entitled to have an independent internal review of our appealable decisions, should they wish. In addition, HMRC has introduced an internal review process.

A new factsheet HMRC1 ‘HM Revenue & Customs decisions – what to do if you disagree’ is available which gives customers background information on the procedures.

If a customer disagrees with a direction notice, they must appeal initially to HMRC.

The appeal must

  • be made in writing to HMRC within the time limit specified in the direction notice
  • be from the person named in the direction, their personal representative or trustee, or the nominated partner if a partnership
  • specify the grounds for appeal and be signed and dated.

The right of appeal is found in Regulation 72C and 81A of the PAYE Regulations.

An appeal is possible against a Regulation 72(5) Condition B direction if the employee

  • received the payments not knowing that the employer wilfully failed to deduct the right amount of PAYE, or
  • considers that the amounts are wrong.

An appeal is possible against a Regulation 81(4) Condition A direction if the employee

  • received the payments not knowing that the employer wilfully failed to deduct the right amount of PAYE, or
  • considers that the amounts are wrong.

An appeal is possible against a Regulation 81(4) Condition B direction if the employee

  • contends that the relevant payment was not a notional payment, or
  • considers that the amounts are wrong.