PAYE21096 - employer records: maintain employer record: employer segmentation - appeals (Action Guide)

 



To deal with appeals against segmentation notices, follow steps 1 - 22 below. The guide is presented as follows

Receipt of an appealSteps 1 - 3
Consideration of an appealStep 4
Appeals against segmentation bandSteps 5 - 7
Employer figures do not agreeSteps 8 - 9
More information received from employerStep 10
Withdrawal of appealStep 11
Appeal referred to the CommissionersStep 12
Appeal decision by the CommissionersSteps 13 - 14
Schemes excluded from online filingSteps 15 - 18
Religious exemption from online filingStep 19
Religious exemption from electronic paymentStep 20
Other appealsSteps 21 - 22


For details of how to access any of the Employer Business Service functions use the [Index of Functions] button on the left of the screen.

Receipt of an appeal

  1. On receipt of an appeal, use Function AMEND EMPLOYER SEGMENTATION to
  • Enter the date in the Appeal Received Date

The appeal must be made in writing within 30 days from the date of issue, or reissue, of the notification to the employer

  1. Your next action will depend on whether the appeal has been received on time
  • If the appeal has been received on time go to step 4
  • A late appeal may be accepted if there is a reasonable ‘excuse’, if so go to step 4
  1. If the appeal is late and cannot be accepted
  • Contact the employer and explain the appeal is late and ask them to withdraw the appeal because it was received late and will be denied by the Commissioners
  • If the appeal is withdrawn go to step 11
  • If the appeal is not withdrawn or the employer does not reply go to step 12

Consideration of an appeal

  1. Use Function AMEND EMPLOYER SEGMENTATION to change the Status field to ‘Appeal Open’ from the drop down list

Note: Appeals may be received from employers for the following reasons

  • Objections to the segmentation band they fall into, go to step 5
  • They do not have any PAYE employees, go to step 15
  • Not wanting to use online filing on religious grounds, go to step 19

Appeals against segmentation band

  1. If an appeal is received on the grounds that the employer is in the wrong segmentation band
  • Check the number of employees supplied by the employer on the appeal letter
  • Use Function VIEW EMPLOYER SEGMENTATION to check the segmentation count for the appropriate year
  • If the recorded segmentation count agrees, (This text has been withheld because of exemptions in the Freedom of Information Act 2000)that stated by the employer accept the employer’s figure and settle the appeal by agreement, go to step 6
  • If the recorded segmentation count does not agree, (This text has been withheld because of exemptions in the Freedom of Information Act 2000)stated by the employer, go to step 8
  1. Issue the appropriate letter to determine the appeal by agreement

  2. Use Function AMEND EMPLOYER SEGMENTATION to
  • Record the Appeal Settled Date
  • Change the Revised Segment Band field to the agreed band
  • Change the Status field to ‘Incorrect Count’

Employer figures do not agree

  1. (This text has been withheld because of exemptions in the Freedom of Information Act 2000)you will need to assess the accuracy of the information held about the number of employees. For example, the number of employees could have been substantially reduced but forms P45(1) may only just have been received and have not yet been processed

If you decide the segmentation band held on our employer records is wrong settle the appeal by agreement and take the action detailed at step 6 above

(This text has been withheld because of exemptions in the Freedom of Information Act 2000)

  1. If the employer does not supply details of how many employees they employ (This text has been withheld because of exemptions in the Freedom of Information Act 2000)

More information received from the employer

  1. When additional information is received from the employer consider whether the appeal is still valid
  • If the recorded segmentation count agrees, (This text has been withheld because of exemptions in the Freedom of Information Act 2000)accept the employer’s figure go back to step 6
  • If you are unable to accept the number of employees submitted by the employer or if the employer does not send in the additional information or evidence requested within four weeks go to step 12

Withdrawal of appeal

  1. If the appeal is withdrawn before it is settled, either by agreement or by the Commissioners
  • Acknowledge the withdrawal to the employer by sending appropriate letter to determine the appeal by agreement
  • Use Function AMEND EMPLOYER SEGMENTATION to
  • Record the ‘Appeal Settled’ Date
  • Change Status field to ‘Appeal Withdrawn’

Note: There should be no entry in the ‘Revised Segmentation Band’ field

Appeal referred to the Commissioners

When an appeal is neither accepted nor withdrawn it will be referred to the Commissioners

  1. Use Function AMEND EMPLOYER NOTES to
  • Record that the appeal has been passed for consideration by the Commissioners
  • Write to the employer to confirm that the appeal is to be heard by the Commissioners
  • Pass the details to the person responsible for maintaining the Commissioners’ lists in order that the case can be listed

Appeal decision by the Commissioners

  1. When an appeal is denied by the Commissioners you should send a letter to the employer explaining that the appeal has been denied and
  • Use Function AMEND EMPLOYER SEGMENTATION to
  • Enter the date in the ‘Appeal Settled’ Date field
  • Amend Status to ‘Appeal Denied’
  • Use Function AMEND EMPLOYER NOTES to note why the appeal was denied

Note: There must not be entry in the Revised Segmentation Band field when an appeal is denied

  1. When an appeal is upheld by the Commissioners you should
  • Use Function AMEND EMPLOYER SEGMENTATION to
  • Enter the settlement date in the ‘Appeal Settled Date’ field
  • Amend ‘Status’ to show the reason for the agreed change which will be either Incorrect Count, Scheme Type Excluded Or Religious Exemption
  • Enter Revised Segmentation Band agreed by the Commissioners
  • Use Function AMEND EMPLOYER NOTES to record details of the appeal decision

Schemes excluded from online filing

There are a number of scheme types which are excluded from the requirement to use online filing

  1. When an employer makes an appeal that they do not have any employees or they operate one of the excluded schemes
  • Use Function VIEW EMPLOYER SUMMARY to determine the present scheme type from the Employer Trade and Scheme Details
  • If the scheme type for the current year is one that is already excluded confirm this to the employer by letter and go to step 16
  • If the scheme type for the current year is one that is not excluded go to step 17
  1. Use Function AMEND EMPLOYER SEGMENTATION to
  • Record the ‘Appeal Settled Date’
  • Change the ‘Status’ field to ‘Scheme Type Excluded’
  1. All employers with genuine employees should make an annual return therefore confirm with the employer that they will no longer have any employees required to pay PAYE or receive tax credits now or in the future
  • If the employer confirms that they need to change to an excluded scheme type follow the guidance in the appropriate change of scheme type Action Guide in section ‘Maintain Schemes’ PAYE27000 onwards
  • Use Function AMEND EMPLOYER SEGMENTATION to
  • Record the ‘Appeal Settled Date’
  • Change Status field to ‘Scheme Type Excluded’
  1. If the employer is unable to provide the information or has not replied after four weeks go back to step 12
  • If the employer withdraws the appeal go back to step 11

Religious exemption from online filing

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

  1. Contact TAA to discuss the individual case
  • The appeal may be accepted if the employer belongs to a particular organisation, is not willing to use computers or online filing and is unwilling to ask a friend to do so on their behalf
  • If TAA agree the appeal is acceptable treat the appeal as settled by agreement
  • Issue the letter to determine an appeal on religious grounds
  • Use Function AMEND EMPLOYER SEGMENTATION to
  • Record the ‘Appeal Settled Date’
  • Change Status field to ‘Religious Exemption’
  • Change Revised Segmentation Band to ‘Exempt’

Religious exemption from electronic payment

Employers cannot appeal against electronic payment on the basis of religious conscience. The only grounds for appeal are those detailed above

  1. If you receive an appeal against the requirement to use electronic payment you should
  • Send a letter asking the employer to withdraw the appeal
  • BF papers for four weeks
  • If the employer withdraws the appeal go back to step 11
  • If the appeal is not withdrawn or you have not received a reply after four weeks contact TAA to discuss the individual case
  • If the TAA agree go back to step 12 to refer the case to the Commissioners

Other appeals

The only grounds for an employer to make an appeal are those given above. If other appeals are received follow the guidance below

  1. Enquiries received by telephone
  • Explain the grounds for appeal as outlined in the leaflet ‘do it online, your guide to filing PAYE returns and paying electronically’ sent out with the original notice and explain that they cannot appeal on other grounds
  • If the employer considers they have valid grounds ask them to write in giving details of the reasons for appeal in line with the instructions in the leaflet
  1. Appeals received by letter
  • Send a letter asking the employer to withdraw the appeal
  • BF papers for four weeks
  • If the employer withdraws the appeal go back step 11 above
  • If the appeal is not withdrawn or you have not received a reply after four weeks go to step 12

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