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HMRC internal manual

Debt Management and Banking Manual

HM Revenue & Customs
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Debt and return pursuit: PAYE: E-payment surcharge appeals: Appeal process

Grounds for appealThe grounds for appeal under Regulation 204 (5) Income Tax (Pay As You Earn) Regulations 2003 are

  • the number of defaults stated on the surcharge notice is incorrect or
  • the amount of the surcharge is incorrect.

Appeal periodThe employer has 30 days from the date shown on the surcharge notice to appeal against the surcharge.

Amended Surcharge Notice Where the surcharge is reduced the original 30 day appeal period applies to the reduced amount. Where the surcharge is increased

  • the original 30 day appeal period applies to the original amount
  • a further 30 day appeal period (from the date shown on the amended surcharge notice) applies to the amount of the increase.

How to appealThe employer must appeal in writing and include the

  • Accounts Office reference shown on the notice
  • employers PAYE scheme name
  • reason for the appeal together with any supporting evidence, and
  • the position in the business of the person submitting the appeal. The appeal should be sent to the DMEU. A faxed copy of an appeal is acceptable.

Late appealsSome appeals will be received outside the time limit and you are not obliged to accept them. However, particularly if you believe the Commissioners would accept the appeal, you have little to gain by refusing the appeal, particularly

  • if the delay is minimal or
  • there was a ‘reasonable excuse’ for not appealing in time and the appeal was brought without unreasonable delay after the excuse had ended. Consider each case on its merits without encouraging local practice or setting precedents

Appeal refusedIf you decide not to accept a late appeal

  • advise the employer in writing that

    • they should apply to the Tribunal to consider their request and

    • you intend to oppose the admission of the late appeal when you attend.