In certain circumstances, HMRC may agree not to collect tax from you if they have failed to make use of information from you or a third party within 12 months after the end of a tax year in which they received it and it was reasonable for you to think your tax affairs were in order. This concession is called ESC A19.
A typical example of where ESC A19 might apply, would be for employees or pensioners with no other income or deductions. As all of their income would be regularly reported to HMRC by way of the payroll scheme, there should be very little reason for their tax affairs to get in a muddle. If they did and there was additional tax due, ESC A19 could be used by the taxpayer. So from what you have said, you may well have a case for using ESC A19.
If you wish to make a request under ESC A19, you must write to HMRC and outline the details such as:
- the tax year and the amount underpaid
- the information you believe HMRC should have used and where possible the date this was provided together with any supporting information you may have
- the reason(s) why this tax calculation is unexpected
HMRC will consider your request and make a decision on whether you have to pay the tax. Please note, HMRC will only consider a request for ESC A19 if tax is still outstanding.
Your local TaxAssist Accountant would be happy to review your affairs and assist you with a request to use ESC A19. Please contact us if you would like to discuss this further.
By Jo Nockels
Disclaimer: The information provided is based on current guidance (at date of publication) from HMRC and may be subject to change. Any advice shared here is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this information, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.