PAYE21095 - employer records: maintain employer record: employer segmentation - appeals

Information about employer segmentation can be found at PAYE21090.

All employers will receive a letter to inform them if and when they will be required by law to use online filing to submit their annual returns. For example an employer with more than 50 employees may wish to appeal against their allocation to a particular segmentation band.

Appeals against the statutory notice

An employer can appeal against the notice on the following grounds

• Not being a large employer (online filing and electronic payment)
• Not being a medium employer (online filing only)
• Religious conscience (online filing only)

The appeal provisions apply to appeals made against online filing notices. 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

Appeals against our refusal to accept the splitting of a PAYE scheme

An employer can request that a new scheme is set up for a group of employees so that an existing scheme is split into two or more new schemes. For more information see subject ‘Election For Separate Schemes’ PAYE20050.

An Inspector can refuse to accept the employer’s request but the employer can appeal against the decision. Appeals must be handled in the usual way

Religious exemption from online filing

A possible ground of appeal against online filing is that of religious conscience. An appeal against online filing may be allowed if the employer is unwilling to file online because they are

• An individual who is a practising member of a religious society or order whose beliefs are incompatible with the use of electronic communication, or
• A partnership where all the partners are practising members of a religious society or order whose beliefs are incompatible with the use of electronic communication, or
• A company where all the directors and the company secretary are practising members of a religious society or order whose beliefs are incompatible with the use of electronic communication

And

• The employer is unwilling to ask someone else, such as a bureau, business agency or friend, to file online on their behalf

Appeals against online filing on the grounds of religious conscience must be treated carefully. If the appeal does not say the employer is a member of the Brethren, contact Tax Administration Advice Unit (TAA) for advice. Do not ask the employer for any information until you have received guidance from TAA.