ESM10039 - off-payroll working: Setting off Tax and National Insurance contributions already paid or assessed: Appeals

Grounds of appeal听

Where HMRC has issued a direction notice, a worker or intermediary has the right to听appeal.听The听appeal must be made to HMRC within 30 days of the issue of the direction notice. The appeal must specify the grounds听of appeal听or it will not be valid. At this stage听the worker or intermediary should听provide HMRC with any听supporting听evidence听relevant to the appeal.听

The specific grounds of appeal听allowed听are听that:听

  • the worker, the intermediary, or the worker and intermediary听did not receive the deemed direct payment;听

  • no tax has been paid听or assessed听on the deemed direct payment;听

  • no trigger event occurred; or听听

  • the amount set-off听is incorrect.听

HMRC will review the grounds of appeal and any supporting evidence and provide a written response.听

If a worker or intermediary still disagrees with HMRC鈥檚 decision following a review, they can appeal directly to a Tribunal.听The appeal must be made听within 30 days of the date of HMRC鈥檚 decision.听You can find further information on how to appeal at /tax-appeals/decision.听

Deemed employer听

A deemed employer is not able to appeal against a direction notice, or the fact HMRC did not issue one. If a deemed employer disagrees with the amount of set-off which has been calculated, it can听provide evidence that a different amount of set-off is due. HMRC will review any information supplied and consider amending the direction notice.听

National Insurance contributions (NICs)听

For NICs听purposes, where there is a dispute relating to a direction by HMRC, a formal decision will be issued under Section 8听of the听Social Security (Transfer of Functions听etc) Act 1999. Any person named on the Section 8 Notice听has the right to appeal against it.听For听an appeal听against this Notice to be听valid it must specify听the grounds of appeal.听

Where a NICs decision is issued to an entity resident in Northern Ireland, this will be issued under Article 7听of the听Social Security (Transfer of Functions etc)(Northern Ireland) Order 1999, but the same appeal rights will apply as under Section 8.听

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