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HMRC internal manual

COTAX Manual

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HM Revenue & Customs
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Appeals: handling appeals and postponements: assessment appeals in responsible CT office (Action Guide)

To deal with an appeal against a CT assessment, consider steps 1 - 14 below. The guide is presented as follows.

Receipt of appeal Steps 1 - 2
Applications for postponement of tax Steps 3 - 8
Late appeals Steps 9 - 11
Suspensions Steps 12 - 14

Receipt of appeal

1.  When you receive an appeal against an assessment or amendment, refer it to the decision maker to deal with by reference to the Appeals, Reviews and Tribunals Guidance at ARTG2120 onwards.

2.  If the appeal is acceptable, use function HAPP (Handle Appeal) to change the appeal status to ‘open’.

Applications for postponement of tax

3.  When you receive an application to postpone tax, refer it to the decision maker to deal with by reference to ARTG2500 onwards.

The decision maker should refer to the guidance at COM10050 to decide if the postponement application is acceptable.

4.  If the postponement is agreed:

  • use function HAPP (Handle Appeal) to record the amount postponed
  • set the postponement status to ‘by agreement’
  • identify the case owner who must then actively manage the postponement. See COM10120 for further guidance.

5.  If it is not agreed and the decision maker makes counter proposals:

  • use HAPP to record the decision maker’s counter proposals in the ‘postponed amount’ field
  • set the postponement status to ’disputed’
  • B/F the file or papers for the return of Form 64-5.

COTAX stands over all unpaid tax until the postponement amount is agreed or determined. Any amount due is not pursued for payment until you have taken the action at Step 6 or Step 7 below.

6.  When agreement is reached:

  • use function HAPP (Handle Appeal) to record the agreed postponed amount and change the status to ‘by agreement’
  • identify the case owner who must then actively manage the postponement. See COM10120 for further guidance.

7.  When the company does not agree the decision maker’s counter proposals, the decision maker writes to the company following ARTG2530, disputed postponement applications, to formally notify the amount of tax to be postponed and the amount payable.

  • Use HAPP to record the postponed amount the decision maker has notified to the company and set the postponement status to ‘by determination’.
  • Identify the case owner who must then actively manage the postponement. See COM10120 for further guidance.

8.  If the company disagrees with the amount notified by the decision maker, the company can write to the Tribunal within 30 days of the notification to ask it to decide the amount of tax to be postponed. When the amount of the postponement is determined by the Tribunal:

  • use HAPP to record the postponed amount determined by the Tribunal and set the postponement status to ‘by determination’
  • identify the case owner who must then actively manage the postponement. See COM10120 for further guidance.

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Late appeals

9.  If you receive a late appeal against an assessment or amendment:

  • use function HAPP (Handle Appeal) to stand over the unpaid tax informally
  • refer it to the decision maker dealing with the case, see ARTG2240.
  1. If the decision maker accepts the late appeal, use HAPP (Handle Appeal) to:
  • reduce the informal standover to nil
  • change the appeal status to ‘open’
  • record any amount to be postponed and set the postponement status to ‘by agreement’
  • identify the case owner who must then actively manage the postponement. See COM10120 for further guidance.
  1. If the decision maker rejects the late appeal, they will write to the company explaining why and telling them to apply to the Tribunal to consider their request if they want to take matters further, ARTG2240.

Where the appeal is refused by the Tribunal or it is withdrawn, use function HAPP to reduce the informal standover to nil.

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Suspensions

  1. When the CT Unit Cumbernauld or the Debt Management office suspends a case, they pass the correspondence to the responsible office with a covering form AOC385 or C52D.

  2. If the appeal is acceptable:

  • use function HAPP to change the appeal status to ‘open’
  • record any amount to be postponed and set the postponement status to ‘by agreement’
  • identify the case owner who must then actively manage the postponement. SeeCOM10120for further guidance.

The suspension is cleared automatically.

  1. If the appeal is not acceptable:
  • use function RSUD (Cancel Suspension) to cancel the suspension
  • send an explanation to the company or agent and reply to the AOC385 or C52D.