PAYE95040 - Taxpayer end of year: HMRC delay: ESC A19: over- repayments

If you tell a taxpayer about an over-repayment more than 12 months after the end of the year in which the original repayment was made it may be appropriate to give up the tax over-repaid under ESC A19.

In order for the taxpayer to qualify there has to have been a failure by HMRC to make proper and timely use of relevant information, which led to the delay in recovering the over-repayment.

In all cases the ‘reasonable belief’ test must be satisfied PAYE95080.

Repayments that are sent in error to the wrong person, or which exceed the tax actually paid, are not arrears of tax, and cannot be given up under ESC A19. These incorrect repayments do not qualify for relief under ESC A19, should be recovered using the guidance in the SA Manual.