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HMRC internal manual

PAYE Manual

Reconcile individual: HMRC delay: ESC A19: basic tests to be applied

There are conditions in ESC A19 which must be met before arrears may be given up. Consider each of them to help you in your decision

  • Do the arrears arise because of HMRC failure to make proper and timely use of information received from the taxpayer, their employer or the DWP? (PAYE95045)
  • Did the information received by HMRC indicate more tax should have been paid? (PAYE95045)
  • Has HMRC notified the arrears more than 12 months after the end of the tax year in which we received the information (PAYE95065)
  • Has HMRC notified an over-repayment more than 12 months after the end of the tax year the original repayment was made? (PAYE95040)
  • Do ‘exceptional circumstances’ apply, which might lead you to consider giving up arrears of tax for CY-1 and CY-2? (PAYE95070)
  • Do you think it was reasonable for the taxpayer to believe that their tax affairs were in order? (PAYE95080)