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PAYE21095 | Employer records: maintain employer record: employer segmentation - appeals and claims

From HM Revenue & Customs · PAYE Manual

Information about employer segmentation can be found at PAYE21090.

All employers are required by law to use online filing to submit their returns.

Appeals and claims against online filing

An employer can appeal or claim against online filing on the following grounds

  • Religious conscience

  • Care and Support employer

  • Digital Exclusion

The appeal and claim provisions apply to appeals or claims made against online filing notices. The usual approach to appeals and claims applies

  • All appeals and claims must be dealt with as priority

  • Receipt of the appeal or claim must be recorded

  • The appeal or claim is an issue of fact and may be settled by

  • Section 54 agreement (including cases where there is a review)

  • Withdrawal by appellant

  • Commissioners’ determination

Appeals against our refusal to accept the splitting of a PAYE scheme

An employer can request that a new scheme is set up for a group of employees so that an existing scheme is split into two or more new schemes. For more information see PAYE20025.

An Inspector can refuse to accept the employer’s request but the employer can appeal against the decision. Appeals must be handled in the usual way.

Religious exemption from online filing

A possible ground of appeal against online filing is that of religious conscience. An appeal against online filing may be allowed if the employer is unwilling to file online because they are

  • An individual who is a practising member of a religious society or order whose beliefs are incompatible with the use of electronic communication

Or

  • A partnership where all the partners are practising members of a religious society or order whose beliefs are incompatible with the use of electronic communication

Or

  • A company where all the directors and the company secretary are practising members of a religious society or order whose beliefs are incompatible with the use of electronic communication

And

  • The employer is unwilling to ask someone else, such as a bureau, business agency or friend, to file online on their behalf

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

Care and Support employers

A claim against online filing on the grounds of being a Care and Support employer, must meet the following criteria

  • The employer must employ a person to provide domestic or personal services at the employer’s home where

  • The services are provided to the employer or member of the employer’s family

And

  • The recipient of the services has a physical or mental disability, or is elderly or infirm

The employer must

  • Not have received a tax free payment for filing online within the last 3 years

And

  • Submit their own Employer Annual Return, which must not be submitted by another person on the employer’s behalf

Note: Claims received on the grounds of being a ‘Care and Support’ employer must be made in writing, treated carefully and not challenged unnecessarily.

In cases of dispute refer the case to the Tax Administration Advice Unit (TAA) for advice.

Digital excluded employers

A claim for digital exclusion can be made but must meet the following criteria

  • The employer must be in an area where broadband coverage is poor and this would affect their ability to file online

  • They must show that they do not have anybody else (family member, friend, etc) who might be able to help them to file online

Or

  • They are elderly (60+ years) and unable to file online due to their age