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

Grounds of appeal

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

The specific grounds of appeal allowed are that:

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

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

• no trigger event occurred; or

• the amount set-off is incorrect.

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

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

Deemed employer

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 provide evidence that a different amount of set-off is due. HMRC will review any information supplied and consider amending the direction notice.

National Insurance contributions (NICs)

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

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