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HMRC internal manual

PAYE Settlement Agreements

Regulation 110 Determinations

Appeals against Regulation 110 Determinations

An employer is entitled to appeal against the amount of tax and Class 1B NICs determined for a year under Regulation 110.

Any dispute concerning what is shown on the form P640 should be considered following the Appeals, Reviews and Tribunals guidance (ARTG).

On receipt of any appeal against a determination

  • acknowledge the appeal
  • try to settle it by agreement

You may agree to stand over all or part of the amount payable by updating the Regulation 110 charge through SAFE.

Appeal settled

Where you are able to settle the appeal by agreement you must do so in the following terms

  • tax due is determined under Regulation 110 the Income Tax (Pay As You Earn) Regulations 2003
  • the Class 1B NICs charge is due under paragraph 16 of Schedule 4 Social Security (Contributions) Regulations 2001.

You must avoid referring to the amount of expenses paid or benefits provided.

Appeal not settled: offer of review

Where you cannot settle an appeal by agreement you may need to offer a review. If you do so you will also need to send the appellant your latest view of the matter. The appellant must accept the review offer or appeal to the tribunal within 30 days of the date of your letter. See ARTG 2010 onwards for more information about review and about what to include in the offer of review letter.

If the appellant does not accept the review offer or appeal to the tribunal within 30 days, the appeal is treated as settled under section 54(1) TMA. See ARTG 2730 for more information.