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HMRC internal manual

Debt Management and Banking Manual

From
HM Revenue & Customs
Updated
, see all updates

Debt and return pursuit: PAYE: penalties for late payment: penalty appeals: background

Internal guidance

This guidance is an overview of the appeal process for PAYE Late-Payment Penalties (PLPP). The guidance is for DMB staff only and is designed to support the Appeals, Reviews and Tribunals Guidance (ARTG); it does not replace it.

It is important that all staff dealing with PLPP appeals familiarise themselves with:

  • this guidance
  • Debt Management SOPs and SWIs (DMSS)
  • ARTG.

Note: The Enterprise Tax Management Platform (ETMP) is the current name for the system formerly known as SAFE.

Training

In addition, all tribunal review officers should complete the online training course ‘Tribunals reform - Review officer’ (available in Online Learning under prospectus number 0011738).

External guidance

There is external guidance on disagreeing with a tax decision (GOV.UK) for direct taxes (including PLPP). It can be accessed from the HMRC website homepage by clicking Complaints & appeals > How to appeal against a direct tax decision.

Identifying letter content

When you receive a letter from a customer it is important that you fully understand the content so that you can follow the correct process:

Appeals This is where the employer disagrees with the charging of the penalty. They will usually supply their reasons for disagreement and why they believe the penalty should be cancelled or amended. Follow this guidance if the letter you have received is an appeal.
   
Complaints A complaint is any expression of dissatisfaction that is not resolved at initial contact and requires a response. Complaints will not necessarily be looking for the penalty to be cancelled or amended; they may just want to express their dissatisfaction with the regime. If you receive a complaint, refer to the DM Complaints intranet site for guidance.
Freedom of Information (FoI) requests If the letter asks for information on HMRC’s management, policies, organisation or performance it is probably an FoI request. There is a statutory requirement to respond to FoI requests within 20 working days and it is therefore important that requests are identified and actioned quickly. Please see the Freedom of Information intranet site for more information.
Subject Access Request (SAR) made under the Data Protection Act (DPA) A customer’s request for their own personal data under the DPA is called a Subject Access Request (SAR). The data can be in any form including electronic records, paper files and phone recordings. There is a statutory requirement to respond to a SAR within 40 calendar days. Please see the DMB SAR guidance for the process to follow if you receive a SAR and the Data Protection Act intranet site for more general information.
A combination of any or all of these You should make sure that all aspects of the employer’s letter are dealt with by contacting the relevant teams and working the case jointly.

 

Important: FOI and DPA information can be withheld in the following circumstances:

 

  • if disclosure of the information would prejudice collection
  • the cost of obtaining the information would be disproportionate
  • to protect the identity of a third party.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000) (This content has been withheld because of exemptions in the Freedom of Information Act 2000) (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

HMRC mistakes

If HMRC make a mistake in calculating or raising the penalty, it can be rectified without an appeal from the employer. You should take the appropriate action to resolve the situation. For example, for a penalty raised on the wrong employer you would:

  • amend the penalty charge to nil
  • apologise to the employer
  • raise the penalty on the correct employer (if appropriate)
  • correct a penalty where HMRC made a calculation error.

Appeals received from agents

An agent can appeal on behalf of their client. If you receive an appeal from an agent:

  • check that we hold a 64-8
  • if we don’t hold a 64-8, issue letter FPI70 from SEES, asking for a 64-8 authorisation from their client.

When dealing with an agent’s appeal, send a copy of your final decision / outcome letter to the employer together with covering letter FPI80, available from SEES.

Technical advice

(This content has been withheld because of exemptions in the Freedom of Information Act 2000) (This content has been withheld because of exemptions in the Freedom of Information Act 2000) (This content has been withheld because of exemptions in the Freedom of Information Act 2000)