AH0565 - Appeals Handbook: Appeals Units: Referrals to the AU

Referrals for AU advice or for AU to take ownership of the case are made via a nominated officer, usually a Grade 6 or 7, who should approve the referral.

For local offices without a Grade 6 or 7 in place referrals are made through the nominated Grade 6 or 7 in the Area Office.

The nature and content of the covering submission should be specified in a Memorandum of Understanding (MOU) between the AU and Area offices. The submission to the AU might follow a format similar to the type of submission you would prepare when seeking technical advice from a specialist technical unit (see SCS122/02). At the very least the submission should include basic information such as

• reference
• name and address of taxpayer
• business address (where appropriate)
• name and address of agent
• whether or not a reply is required urgently
• what advice is needed and why
• a summary of the relevant facts (preferably in list form) with the relevant papers flagged
• what is under appeal
• the relevant legislation and guidance.

Your AU may provide a template to complete when submitting a case to them.

The AU decides, on the basis of the submission, whether or not they wish to assume ownership of the case.

When to consult the AU

Consult the AU in all cases where:

• there is a likelihood that a hearing will take place before the Special Commissioners
• a separate contentious appeal hearing is likely to be arranged
• there is a point of principle at stake in the case that may have a wider application to other cases or a national impact
• agents are taking specific tactical approaches to cases which may have a wider implication to several taxpayers across areas.

The fact that the AU has been consulted does not necessarily mean that they will take responsibility for the hearing.

There are any number of other situations where the Area /Local office may wish to consult with the AU or request that the AU take forward a case. These may include taking specialist subject matter appeals before the Commissioners such as appeals or contentious appeals against:

• SSP, SMP, SPP or SAP Decisions
• NICs issues relating to events which took place long ago (where expert evidence and examination of witnesses may be crucial)
• Regulation 80 (formerly 49) Determinations in IR35 or status cases
• Trusts
• Pension Funds
• National Minimum Wage
• Student Loans
• Tax Credits
• Child Benefit decisions
• TMA70/S100 penalty determinations
• CIS appeals
• EIS or SCEC appeals
• R&D appeals.

Area and local offices can also seek advice from the AU in more routine areas if this is appropriate.

Timing of submissions

The sooner the AU see a case that is likely to become contentious the better (because we are unable to use SA information powers once we have issued a closure notice). However, AUs have limited resources and cases can only be reviewed prior to closure in exceptional cases and where requested by the Grade 6 or 7 manager. AUs are available for advice by phone during the course of an enquiry.

There are some cases where submission to a Head Office specialist is mandatory before a case is listed for appeal. All such submissions should be made before a case is submitted to the AU.