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HMRC internal manual

PAYE Manual

Employer returns: electronic employer returns: maintain incentive appeal


Information about incentive payments can be found in ‘Incentive payments’ at PAYE44020.

Small employers (0 - 49 segmentation band) who are required to send an employer annual return, (P14s and P35), are eligible for incentive payments if they use online filing to file their return for tax years 2004-05 to 2008-09.

An employer can appeal against the failure to be awarded an incentive payment or the withdrawal of an incentive payment.

Note: Information about appeals against segmentation can be found in ‘Employer segmentation - appeals and claims’ at PAYE21095. Information on the appeals process is in the Appeals, Reviews and Tribunals Guidance (ARTG).

Appeals against the non award or withdrawal of an incentive payment

An employer can register an appeal due to either

  • The non - award of an incentive payment


  • The withdrawal of an incentive payment

The appeal will record whether the employer is disputing

  • An incorrect recording of whether the return was filed online
  • An incorrect segmentation band


  • Both of the above

The appeal provisions apply to appeals against the non-award of an incentive payment or the withdrawal of an incentive payment. The usual approach to appeals applies

  • Appeals must be made in writing within 30 days of the date of the notice
  • All appeals must be dealt with as priority
  • Receipt of the appeal must be recorded
  • The appeal is an issue of fact and may be settled by

    • Section 54 agreement
    • Withdrawal by appellant
    • Tribunal determination