PAYE95001 - Taxpayer end of year: HMRC delay: ESC A19: introduction

(This text has been withheld because of exemptions in the Freedom of Information Act 2000)

If there is a lengthy delay by HMRC in notifying someone that they owe additional income tax, capital gains tax or Class 4 NIC we may be able to give up the arrears under Extra- Statutory concession A19 (ESC A19), as long as all the conditions set out in the concession are met.

Throughout this guidance, the word ‘taxpayer’ (rather than ‘customer’) is used to accord with the wording in the concession itself. The full text of the concession is at PAYE95005. The concession is still occasionally referred to as ‘official error’. The correct term for ESC A19 is ‘Giving up tax where there are Revenue delays in using information’.

The concession applies to underpayments and over-repayments. Both are described as ‘arrears’ in the concession itself, so that word is used throughout this guidance. Potential underpayments for the current year that have been notified to the taxpayer are not classed as ‘arrears’ and must not be given up.

• An explanation should be sent to the taxpayer whenever we notify arrears of tax for the first time. If it is not possible to fit a clear and complete explanation on the calculation, a separate letter should be sent.

SA cases

Because of the strict statutory time limits surrounding SA returns, and the greater responsibility placed on the taxpayer, ESC A19 will not normally apply. However, the general principles in the following pages apply equally whenever the concession is considered.