PAYE95025 - Reconcile individual: HMRC delay: ESC A19: basic tests to be applied

There are conditions in ESC A19 which must be met before any arrears may be given up. These are listed below. Consider each of them in turn, 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 ‘exceptional circumstances’ apply? In which case CY-1 tax may also be eligible PAYE95070 
• Was it reasonable for the taxpayer to believe that their tax affairs were in order whilst the arrears were accruing? PAYE95080. In all cases the reasonable belief test must be satisfied for the concession to apply.

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