PAYE44026 - Employer returns: electronic employer returns: maintain incentive appeal (Action Guide)

To deal with appeals against the non-award or withdrawal of an incentive payment, follow steps 1 - 25. The guide is presented as follows

Steps 1 - 3

Receipt of an appeal

Step 4

Consideration of an appeal

Steps 5 - 8

Not awarded - Segmentation Band

Steps 9 - 12

Not awarded - Filed Online

Step 13

Not awarded - Seg + Filed Online

Steps 14 - 15

Not awarded - Scheme Type

Step 16

Withdrawn - Segmentation Band

Step 17

Withdrawn - Filed Online

Step 18

Withdrawn - Seg + Filed Online

Steps 19 - 21

Determine the appeal

Step 22

Withdrawal of appeal

Step 23

Appeal not withdrawn

Steps 24 - 25

Appeal decision by the Tribunal

For details of how to access any of the Employer Business Service functions, use PAYE057.

Receipt of an appeal

On receipt of an appeal

1. Use Function MAINTAIN INCENTIVE APPEALS to check the Filed Online indicator and segmentation band and

  • Enter the date in the Appeal Received Date
  • Where the appeal is on the grounds that no incentive payment has been made and a notice has not been issued withdrawing the incentive payment you can accept the appeal - go to step 4
  • When a notice has been issued withdrawing an incentive payment, the appeal must be made in writing within 30 days from the date of issue, or reissue, of the notice to the employer

2. 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

3. If the appeal is late and should be refused

  • Contact the employer and explain the appeal is late and ask them to withdraw the appeal because it was received late and will probably be denied by the Tribunal
    • If the appeal is withdrawn go to step 22
    • If the appeal is not withdrawn or the employer does not reply go to step 23

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Consideration of an appeal

4. Use Function MAINTAIN INCENTIVE APPEAL and select a reason for the appeal from the Reason drop down list. The available options are

  • ‘Not awarded - Segmentation Band’, go to step 5
  • ‘Not awarded - Filed Online’, go to step 9
  • ‘Not awarded - Seg + Filed Online’, go to step 13
  • ‘Not awarded - Scheme Type’, go to step 14
  • ‘Withdrawn - Segmentation Band’, go to step 16
  • ‘Withdrawn - Filed Online’, go to step 17
  • ‘Withdrawn - Seg + Filed Online’, go to step 18

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Not awarded - Segmentation Band

When an appeal is received against the non-award of an incentive payment and the employer claims to be a small employer who has filed online, but the Segmentation Band is recorded as a medium, large or excluded employer

Notes:

a. An excluded employer is not required to file their annual end of year returns online. The scheme types which are excluded from segmentation and the need to use online filing to submit their returns are DCNI, DPGEN, DPNI, ELECT, EXAM, NORPRO, PSS, TAS, and XP.

b. A small employer will be shown as excluded if the scheme was changed from type XP to either type P or type PSC and the segmentation band was not changed at the time.

5. Review 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 with, (This content has been withheld because of exemptions in the Freedom of Information Act 2000) that stated by the employer go to step 19
    • If the recorded segmentation count does not agree with, (This content has been withheld because of exemptions in the Freedom of Information Act 2000) that stated by the employer go to step 6
    • If the segmentation band is shown as ‘Excluded’ and the scheme type is either P or PSC go to step 19

6. (This content 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 at step 19

7. If the employer does not supply details of how many employees they employ (This content has been withheld because of exemptions in the Freedom of Information Act 2000) contact the employer for more information - for example

  • Ask the employer to provide evidence of the number of employees they employed at the annual review date
  • A list of each employee and their National Insurance number, or copies of open deductions working sheets
  • Give details of any recent changes that has effected the number of people they employed
  • Ask the employer to let you know anything else that they think is relevant to their appeal
  • BF the papers for four weeks

8. When the additional information is received from the employer consider whether the appeal is still valid

  • If the recorded segmentation count agrees with, (This content has been withheld because of exemptions in the Freedom of Information Act 2000) that stated by the employer accept the employer's figure go to step 19
  • 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 within four weeks go to step 23

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Not awarded - Filed Online

When an appeal is received against the non-award of an incentive payment but the Filed Online Indicator is blank this may be because the return has not been consolidated

9. Use Function VIEW EOY RETURNS HISTORY to check the current Return Status Indicator (RSI) of the return, this will allow you to establish what stage the return has reached in the consolidation process

  • If the Return Status Indicator is set to RSI1, the return has not been consolidated
    • BF the papers for four weeks to review the Return Status Indicator again
  • If the Return Status Indicator is set to RSI2, the return has been consolidated and the status of return receipt will be noted as a COMPLETE RETURN

When the return has been consolidated

10. Use Function AMEND EMPLOYER INDICATORS to set the Filed Online indicator and go to step 20

When an appeal is received against the non-award of an incentive payment and the Filed Online Indicator field is blank and the employer has filed online using the Internet or EDI

11. Use Function VIEW EOY RETURNS HISTORY to check the return receipt details

  • Where the receipt is noted COMPLETE RETURN and the Return Status Indicator is set to RSI2, or
  • If the return is not displayed in the Return Receipts Details list box
    • Use e-Services Filestore to confirm that a return has been filed online, or
    • The Tracking Tool to check the submission status and that the submission channel is not paper or magnetic media, then
  • Use Function AMEND EMPLOYER INDICATORS to set the Filed Online indicator and go to step 20

When an appeal is received against the non-award of an incentive payment but the Filed Online Indicator is blank or 'N', the employer may not have filed online

12. Use Function VIEW EOY RETURNS HISTORY to check that a complete return has not been filed by Internet or EDI

  • If the return has been filed by media type 'paper', or
  • If the return is not displayed in the Return Receipts Details list box
    • Use e-Services Filestore to confirm that a return has been filed by paper or magnetic media, or
    • The Tracking Tool to check the submission status and the channel is paper or part electronic

Where the return has not been filed online

  • Write to the employer confirming that the return has not been filed online and ask the employer to withdraw their appeal
  • BF your papers for four weeks
  • If the employer withdraws the appeal go to step 22, or
  • If the employer does not reply or withdraw the appeal go to step 23

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Not awarded - Seg + Filed Online

When an appeal is received against the non-award of an incentive payment but the employer is a medium or large employer and there is no record of the employer filing the return online

13. Confirm the details by reviewing the segmentation count (step 5) and the Filed Online Indicator (step 12)

  • Write to the employer confirming that they are a medium or large employer and are not entitled to the incentive payment and ask the employer to withdraw their appeal
  • BF your papers for four weeks
  • If the employer withdraws the appeal go to step 22, or
  • If the employer does not reply or withdraw the appeal go to step 23

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Not awarded - Scheme Type

When an appeal is received against the non-award of an incentive payment but the employer's scheme type is excluded

14. Write to the employer to explain that excluded employers are outside the mandatory requirements to file online and are not entitled to the incentive payment and ask the employer to withdraw their appeal

  • BF your papers for four weeks
  • If the employer withdraws the appeal go to step 22, or
  • If the employer does not reply or withdraw the appeal go to step 23

15. When an appeal is received against the non-award of an Incentive payment and

  • The employer's scheme type is recorded incorrectly as 'excluded'
  • The employer has filed a P35 online, and
  • The correct scheme type is P or PSC
    • An item will appear on the ‘Filed Online Return Exceptions’ work list
    • Follow the guidance in ‘Filed online return exceptions (Action Guide)’ at PAYE53046
  • Use Function AMEND EMPLOYER INDICATORS to set the Filed Online indicator and go to step 19

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Withdrawn - Segmentation Band

When an appeal is received against the withdrawal of an incentive payment on the grounds that the employer has been placed in the wrong Segmentation Band

16. Review the previous papers to check why the original incentive payment was withdrawn

  • Write to the employer to explain the reason why the incentive payment was withdrawn
  • Ask the employer to withdraw their appeal
  • BF your papers for four weeks
    • If the employer withdraws the appeal go to step 22, or
    • If the employer does not reply or withdraw the appeal go to step 23

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Withdrawn - Filed Online

When an appeal is received against the withdrawal of an incentive payment on the grounds that the employer did not file their return online

17. Review the previous papers to check why the original incentive payment was withdrawn

  • Write to the employer to explain the reason why the incentive payment was withdrawn
  • Ask the employer to withdraw their appeal
  • BF your papers for four weeks
    • If the employer withdraws the appeal go to step 22, or
    • If the employer does not reply or withdraw the appeal go to step 23

 

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Withdrawn - Seg + Filed Online

When an appeal is received against the withdrawal of an incentive payment on the grounds that the employer has been placed in the wrong Segmentation Band and there is no record of the employer filing the return online

18. Review the previous papers to check why the original incentive payment was withdrawn

  • Write to the employer to explain the reason why the incentive payment was withdrawn
  • Ask the employer to withdraw their appeal
  • BF your papers for four weeks
    • If the employer withdraws the appeal go to step 22, or
    • If the employer does not reply or withdraw the appeal go to step 23

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Determine the appeal

When you agree with the employer's reasons for appeal and you are to settle the appeal by agreement

19. Use Function AMEND EMPLOYER SEGMENTATION to

  • Change the Status field to 'Incentive Appeal'
  • Change the Revised Segmentation Band to 0-49
  • Leave the Appeal Received Date and Appeal Settled Date fields blank
  • Select on the [Amend] button and if correct
  • Select on the [OK] button
  • Go to step 20

20. Record the Appeal Settled DateUse Function MAINTAIN INCENTIVE APPEALS to

  • Record the Appeal Settled Date
  • Select 'Upheld' from the Outcome drop down list
  • Select the [Amend] button
  • Select the [OK] button
  • Go to step 22

21. Write to the employer to formally determine the appeal by agreement

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Withdrawal of appeal

If the appeal is withdrawn before it is settled, either by agreement or by the Tribunal

22. Acknowledge the withdrawal to the employer by sending an appropriate letter to determine the appeal by agreement

  • Use Function MAINTAIN INCENTIVE APPEALS to
    • Record the Appeal Settled Date
    • Select 'Withdrawn' from the Outcome drop down list
    • Select the [Amend] button
    • Select the [OK] button

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Appeal not withdrawn

When an appeal is neither accepted nor withdrawn write to the employer setting out your view of the matter and offer the customer a review (see ARTG4220 for guidance about what to cover)

23. Use Function AMEND EMPLOYER NOTES to

  • Record the date that a offer of review letter was issued
  • If a review is requested see ARTG2213 for how to proceed
  • If there is no reply or the employer does not want a review treat the case as if the appeal had been agreed by settlement go to step 19

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Appeal decision by the Tribunal

When the Tribunal has denied an appeal

24. Send a letter to the employer explaining that the appeal has been denied and

  • Use Function MAINTAIN INCENTIVE APPEALS to
    • Record the Appeal Settled Date
    • Select 'Denied' from the Outcome drop down list
    • Select the [Amend] button
    • Select the [OK] button
  • Use Function AMEND EMPLOYER NOTES to note the Tribunal decision

When an appeal is upheld by the Tribunal ensure the Segmentation Band and the Filed Online indicators are correct as determined by the Tribunal

25. Send a letter to the employer explaining that the appeal has been upheld

  • Use Function AMEND EMPLOYER SEGMENTATION to
    • Change the Status field to 'Incentive Appeal'
    • Change the Revised Segmentation Band to 0-49
    • Leave the Appeal Received Date and Appeal Settled Date fields blank
    • Select the [Amend] button

And if correct

  • Select the [OK] button
  • Use Function MAINTAIN INCENTIVE APPEALS to
    • Record the Appeal Settled Date
    • Select 'Upheld' from the Outcome drop down list
    • Select the [Amend] button
    • Select the [OK] button
  • Use Function AMEND EMPLOYER INDICATORS to set the Filed Online indicator
  • Use Function AMEND EMPLOYER NOTES to note the Tribunal decision