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HMRC internal manual

Debt Management and Banking Manual

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

The employer must put their appeal in writing. To appeal, they have to say they do not agree with the penalty. If they do not specify the grounds on which they are appealing and simply say they want to appeal, you should contact the employer to discuss possible grounds. Schedule 56 Finance Act 2009 contains the following grounds for appeal:

  • penalty not due(This content has been withheld because of exemptions in the Freedom of Information Act 2000)  
  • amount of the penalty incorrect; for example, payment may have been allocated incorrectly leading to an incorrect penalty
  • reasonable excuse; for example, they have a reasonable excuse for the failure, and they put this right, without unreasonable delay, after the excuse ended.

Important: Do not reject an appeal on the grounds you think the content is invalid as this leaves the employer with no choice but to go to tribunal. Instead, you should accept the appeal and review the decision in line with this guidance and the ARTG manual. You should then let the employer know your decision and the reasons why you have reached that conclusion.