PAYE96345 - Reconcile individual: simple assessment: query and appeal process
The Simple Assessment process has been developed so that the PAYE individual customer or representative can query or appeal a Simple Assessment tax calculation (PA302).
Query and appeal
A ‘Query’ is raised where the PAYE customer (or representative) contacts HMRC by phone, or in writing to state they do not agree with the Simple Assessment charge including reason(s) why. The customer has 60 days to report a Query from the issue date of the PA302.
An ‘Appeal’ is raised where the customer does not agree with the Simple Assessment charge on the revised PA302 issued following the closure of a Query. This must be received in writing 30 days following closure of the Query. NPS allows the user to raise the following:
Query flag
If the customer contacts us to query their tax calculation an operator will set the ‘Query’ flag before updating the customer’s record. Setting the query flag does not suspend collection of the underpayment. The operator will then update the customer record and close the query, the updated record will be reconciled automatically overnight by batch processing. Manual reconciliation is not required once the query is closed.
Query and suspend flag
Where the customer queries the PA302 and further investigation is required the operator sets the ‘Query and suspend’ flag. NPS will inform ETMP to suspend collection until the query is manually closed or automatically closed after 6 months. When the query is closed, the record will be reconciled automatically overnight by batch processing. Manual reconciliation is not required once the query is closed.
Appeal flag
Is set when a customer appeals in writing against the revised PA302 issued, following a query. This does not suspend collection. When the operator closes the appeal, the updated record will be reconciled automatically overnight by batch processing. Manual reconciliation is not required once the appeal is closed.
Appeal and suspend flag
Is set when the customer appeals in writing against the revised PA302 issued following a query. NPS will inform ETMP to suspend collection until the appeal is closed by the operator. When the operator closes the appeal, the updated record will be reconciled automatically overnight by batch processing. Manual reconciliation is not required once the appeal is closed.
Note: An operator will be prevented from raising an appeal or appeal and suspend on NPS if a query has never been raised.
Setting a query or query and suspend flag
NPS allows a user to set and close a query when updating a Simple Assessment where new information is provided by the customer. Where the query and suspend flag is set NPS will notify ETMP to suspend collection until the query is closed.
The query or query and suspend flag should not be set when information has been provided by a third party. This is only used following an update provided by the customer or representative.
Closure of queries and appeals
A revised PA302 will be automatically issued to the customer when a query or appeal has been closed. Closure of a query or appeal triggers batch reconciliation processing and issue of a PA302 irrespective of if the result is the same or changed from the initial reconciliation result.
A query will close when one of the following takes place:
- The query is closed manually
- The query is automatically closed 6 months after it was raised.
An appeal does not have an automatic closure date and can only be closed by manual process.
Reconciliation processing where query or query and suspend flag is set
Where a query or appeal has been raised on NPS the tax year cannot be reconciled until the query has been closed. Where a manual reconciliation is triggered whilst the query flag is set an error message will be displayed, the reconciliation process will stop, and the previous reconciliation result will be kept.
Where a query or appeal is raised this will only apply to the tax year the query has been set on. All other tax years continue to operate as per PAYE and Simple Assessment processing rules.
Multiple year reconciliation processing will skip any existing Simple Assessment years where the query flag is set.