PAYE95030 - Taxpayer end of year: HMRC delay: ESC A19: underpayments - communication with the taxpayer

Good communication with the taxpayer is vital. If you decide that it is not appropriate to write off the underpayment under ESC A19, the informal calculation should be accompanied by an explanation about the underpayment.

If for some reason it is not possible to issue the calculation immediately or to quantify the arrears precisely, a letter or phone call warning the taxpayer that they will owe some tax for, say, CY-1 may keep the case within the time limits in the concession.

• If you telephone the taxpayer, make a note of the conversation on their record as it may be useful in deciding ‘reasonable belief’ at a later point.