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HMRC internal manual

PAYE Manual

HM Revenue & Customs
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Reconcile individual: HMRC delay: ESC A19: introduction

If HMRC delays notifying a taxpayer that there is underpaid income tax, capital gains tax or Class 4 NIC, HMRC may decide not to collect these arrears under Extra-Statutory Concession A19 (ESC A19) ‘Giving up tax where there are Revenue delays in using information’.

Certain conditions have to be met and the full text of ESC A19 is at PAYE95005.

In this guidance, the word ‘taxpayer’ (rather than ‘customer’) is used to accord with the wording in ESC A19. ESC A19 applies to underpayments and over-repayments of tax. Both are described as ‘arrears’ in the concession, so that term is also used in this guidance.

Potential underpayments included in the tax code notices are not considered under ESC A19. This is because ESC A19 only applies to tax arrears which are notified late after the tax year end.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

SA cases

Because of the statutory time limits for filing SA returns, and the greater responsibility placed on the taxpayer, ESC A19 does not normally apply. But on those occasions where it may be considered, the general principles in the following pages apply equally. SA background guidance is at SAM101120.