PAYE95025 - Taxpayer end of year: HMRC delay: ESC A19: basic tests to be applied

For arrears to be given up all the conditions in the concession must be met. Several factors have to be considered and are listed below. Apply each of them in turn to every case that you review, to help you in your decision.

• For CY-2 or earlier is there an underpayment that we have not previously notified to the taxpayer, or otherwise warned him about?
• Is there an over-repayment that we are notifying to the taxpayer more than 12 months after the end of the tax year in which the repayment was made? PAYE95040
• Do the arrears arise wholly or partly because of HMRC failure to make proper and timely use of information received from the taxpayer, their employer or the DWP? PAYE95045
• Did the information indicate that more tax was due?
• Are we notifying the taxpayer of the arrears more than 12 months after the end of the tax year in which we received the information? PAYE95065
• Do the ‘exceptional circumstances’ apply? In which case CY-1 tax may also be eligible PAYE95070
• If you are satisfied that the arrears are notified outside the time limits, was it reasonable for the taxpayer to believe that his or her affairs were in order? PAYE95080. In all cases the reasonable belief test must be satisfied for the concession to apply.

A template is available and recommended for use in reaching your decision.