It is now possible to appeal against a Construction Industry Scheme (CIS) penalty using the online appeals service. HMRC are recommending that contractors and their agents use this option to appeal penalties, as it is intended to make the appeals process quicker and more straightforward. As recommended by the Northern Ireland Tax Committee in its response to the consultation “Improving the Operation of the Construction Industry Scheme”, the paper appeals system is still available.

The appeals service can be accessed through the PAYE/CIS Online section of HMRC’s Online Services. Any penalties that can be appealed will appear under the “Appeal a Penalty” heading, and notification of the outcome of appeals under the “Generic Notices” heading.

When an appeal is made using this service, contractors (or their appointed agents) receive an immediate acknowledgement. Where possible, it is intended that the appeal is also dealt with and the outcome notified online. If an appeal cannot be accepted immediately but is referred for further review within HMRC, HMRC will still issue letters. The aim of the service is that, in straightforward cases, not needing to use post should make both appealing and finding out the outcome faster.