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HMRC internal manual

PAYE Manual

Reconcile individual: HMRC delay: ESC A19: text of the concession

‘Arrears of income tax and capital gains tax may be given up if they result from the failure of HMRC to make proper and timely use of information supplied by

  • A taxpayer about his or her own income, gains or personal circumstances


  • An employer, if the information affects a taxpayer’s coding


  • The Department for Work and Pensions (DWP), about a taxpayer’s state retirement, disability or widow’s pension

Tax will normally be given up only if the taxpayer

  • Could reasonably have believed that his or her tax affairs were in order


  • Was notified of the arrears more than 12 months after the end of the tax year in which HMRC received the information indicating that more tax was due


  • Was notified of an over-repayment after the end of the tax year following the year in which the repayment was made

In exceptional circumstances arrears of tax notified 12 months or less after the end of the relevant tax year may be given up if HMRC

  • Failed more than once to make proper use of the facts they had been given about one source of income


  • Allowed the arrears to build up over two whole tax years in succession by failing to make proper and timely use of information they had been given