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HMRC internal manual

Construction Industry Scheme Reform Manual

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Late Return Automatic Penalties: Appeal Status options

CISR65600 Action Guide contents
   

Once an appeal has been logged, you must follow appropriate procedures (CISR65120) to settle the appeal. You should record the progress of the appeal at all stages by selecting an ‘appeal outcome’ from the drop-down menu within the ‘Determine Penalty Appeal’ window. You will need to hold the CISR Penalty Administrator role to access this function (see the Action Guide at CISR65630).

You will not be able to vacate a penalty if an appeal has already been logged against it even if it is found that the penalty was issued in error. Where an appeal has already been logged against a CIS penalty and the penalty was issued in error, you will need to determine the appeal in favour of the appellant as ‘Upheld by HMRC’.

To help you, all of the stages of an appeal are shown below, with a brief description of what each one means and the selection to be used from the CIS system drop-down menu when the appeal has reached that stage.

Appeal Stage Description CIS system drop-down menu item to be used
     
     
Appeal made to HMRC The appeal has been logged and is currently open and either no further action has been taken, or the appeal is under consideration by the Decision Maker and no decision regarding the appeal has yet been made. Received
Appeal accepted by Decision Maker The Decision Maker accepts the grounds of the appellant’s appeal and HMRC cancels the penalty that has been issued. The appellant does not notify their appeal to the tribunal. The penalty is reduced to nil. Upheld by HMRC
Appeal refused by Decision Maker The appeal is open and the Decision Maker considers that the appellant does not have grounds for an appeal and has issued a decision letter to the appellant. Withdrawal invited
Appeal settled by agreement under TMA70/S54 Following the issue of the decision letter the appellant agrees that the penalty is technically valid and does not make a request for an internal review or notify the appeal to the tribunal. The penalty remains in the sum currently issued. Determined by agreement
Decision letter issued and decision final as no response within 45 days Following the issue of the decision letter the appellant does not make a request for an internal review or notify the appeal to the tribunal within 30 days of the decision letter. The penalty remains in the sum currently issued. Determined by agreement
Internal Review requested by appellant The appeal is open and following the issue of the decision letter the appellant has requested an internal review of the matter. Being Reviewed
Review conclusion letter issued, HMRC decision cancelled Following the issue of the review conclusion letter, HMRC cancels the penalty that has been issued. The appellant does not notify their appeal to the tribunal. The penalty is reduced to nil. Upheld by HMRC
Review conclusion letter issued and HMRC decision varied Following the issue of the review conclusion letter, varies the penalty that has been issued. The appellant does not notify their appeal to the tribunal. The penalty is reduced to the revised figure as agreed. Upheld in favour of HMRC (see note below)
Review conclusion letter issued and HMRC decision upheld Following the issue of the review conclusion letter, the HMRC decision is upheld, and the appellant does not notify the appeal to the tribunal within 30 days of the review conclusion letter. The appeal is determined under TMA70/S54 and the penalty remains in the sum currently issued. Determined by agreement
Review conclusion letter issued and HMRC decision deemed upheld Following the issue of the review conclusion letter the appellant makes no response and does not notify their appeal to the tribunal within 30 days of the review conclusion letter. The appeal is determined under TMA70/S54 and the penalty remains in the sum currently issued. Determined by agreement
Appeal notified to the tribunal No agreement has been reached between the appellant and HMRC regarding the appeal, either after the issue of the decision letter or the review conclusion letter and the appellant has now notified the appeal to the tribunal. The appeal is still open. Listed for Personal Hearing
Tribunal has determined appeal and HMRC decision cancelled An appeal against the penalty has been heard and determined at a tribunal hearing in favour of the appellant. The penalty is reduced to nil. Upheld at Personal Hearing
Tribunal has determined appeal and HMRC decision varied An appeal against the penalty has been heard and the penalty has been determined at a tribunal hearing in a lower figure than it was issued but higher than nil. The penalty is reduced to the revised figure. Upheld in favour of HMRC (see note below)
Application to tribunal to accept a late appeal accepted An appeal was made later than the 30 day appeal period which HMRC has not accepted. The appellant decided to apply to the tribunal to see whether that appeal could be accepted and the late appeal was accepted by the tribunal. The appeal remains open. Late appeal accepted at personal Hearing
Application to tribunal to accept a late appeal refused An appeal was made later than the 30 day appeal period which HMRC has not accepted. The appellant applied to the tribunal to see whether that appeal could be accepted and the late appeal was rejected by the tribunal. The appeal is now closed and the penalty remains in the sum currently issued. Late appeal rejected at Personal Hearing
Permission is granted to appeal against a tribunal decision An application was made by the appellant, or HMRC, for permission to appeal against a tribunal decision and permission has been granted This option is not available within the Appeal drop-down menu. Instead you must use the ‘Re-open’ function (see CISR65140)
Permission is granted to appeal against a tribunal decision, but the appellant later withdraws that appeal Permission to appeal against a tribunal decision was requested by the appellant and had been granted by the tribunal. The appellant has now subsequently decided not to pursue the appeal any further. The appeal is now closed and the penalty remains in the sum determined by the tribunal. Re-opened, withdrawn by appellant
Permission is granted to appeal against a tribunal decision, but HMRC later withdraws that appeal Permission to appeal against a tribunal decision was requested by HMRC and had been granted by the tribunal. HMRC has now subsequently decided not to pursue the appeal any further. The appeal is now closed and the penalty remains in the sum determined by the tribunal. Re-opened, withdrawn by HMRC
Upper Tribunal determined appeal and HMRC decision cancelled An appeal has already been determined at a tribunal hearing and the appellant, or HMRC, requested and was given permission to appeal against the tribunal decision. The Upper Tribunal has now found in favour of the appellant. The appeal is now closed and the penalty is reduced to nil. Upheld in favour of appellant
Upper Tribunal determined appeal and HMRC decision varied An appeal has already been determined at a tribunal hearing and the appellant, or HMRC, requested and was given permission to appeal against the tribunal decision. The Upper Tribunal has now determined the penalty in a lower figure than it was issued but higher than nil. The penalty is reduced to the revised figure. Upheld in favour of HMRC (see note below)
Upper Tribunal determined appeal and HMRC decision upheld An appeal has already been determined at a tribunal hearing and the appellant, or HMRC, requested and was given permission to appeal against the tribunal decision. The Upper Tribunal has now found in favour of HMRC. The appeal is now closed and the penalty remains in the sum determined by the Upper Tribunal. Upheld in favour of HMRC

Note; where the tribunal determines the sum of the penalty in a lower figure than it was issued but the new figure is more than zero, then you should use the option ‘Upheld in favour of HMRC’ instead as this is the only option that will allow the ‘amount’ field to become free and be over-written.