PAYE95010 - Reconcile individual: HMRC delay: ESC A19: who is eligible?

Only personal income tax, class 4 NIC and capital gains tax may be considered. ESC A19 does not apply to any other tax or contribution.

Class 4 NIC is not specifically mentioned in the concession but it has always been HMRC policy to include it if any tax under Self Assessment is being given up under ESC A19.

If there is more than one reason for an underpayment of tax, a notional credit can be recorded against the proportion of tax that is due to HMRC failure to act on information about the particular source of income. Any balance should be collected from the taxpayer.

Only the net underpayment of tax in any year should be considered.

For example, if underpaid tax of £500 is requested to be given up under ESC A19, but during your review of the matter you identify that additional tax relief is due for £200, then you should re-reconcile the tax calculation. If all the conditions of ESC A19 are met, then the tax of £300 can be given up by recording a Revenue Loss (PAYE90030). You should inform the taxpayer why the reduced figure has been given up.

But, see PAYE95035 if there is an overpayment available for set off from another year.

You should not assume that tax can be given up in the absence of evidence that HMRC failed to act on information received about a source of income which affected the taxpayers coding (PAYE95045).