PAYE95065 - Reconcile individual: HMRC delay: ESC A19: what years?
Main time limit
ESC A19 may be considered for any tax year apart from the current year (CY) and the year before (CY-1). This is because strictly there are no arrears because the tax year has not yet ended.
The taxpayer will know that their tax affairs cannot possibly be in order for CY by virtue of the fact that they have been notified about tax arrears for earlier tax years during CY which are a result of HMRC failure to make proper and timely use of information.
In regard to CY-1 although there are arrears, the main time limit would prevent HMRC consideration, but see ‘Exceptional circumstances’.
Exceptional circumstances
If HMRC fails to make proper use of the facts given about the same source of income
- On more than one occasion
And
- As a result, tax arrears are notified which have built over two or more whole tax years
And
- The latest of those years is CY-1, for example, tax notified less than 12 months after the end of the last tax year
then as long as the reasonable belief test is satisfied then the tax for CY-1 may also be given up.
See PAYE95075 for examples of exceptional circumstances cases.
