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HMRC internal manual

PAYE Manual

Reconcile individual: HMRC delay: ESC A19: underpayments - overpaid tax for other tax years

Overpaid tax should only be repaid or set off against an underpayment to which ESC A19 does not apply.


Tax years CY-3 to CY-1 are notified to the taxpayer who makes an ESC A19 claim.

After review the position is as follows

  • CY-3 - Tax overpaid £100
  • CY-2 - Tax underpaid £400 but is given up under ESC A19
  • CY-1- Tax underpaid £350 but ESC A19 does not apply

The tax of £400 for CY-2 is recorded as a Revenue Loss and noted in the ESC A19 Establishment file, PAYE95105.

The overpaid tax for CY-3 is set off against the CY-1 underpaid tax, reducing the tax due to £250.

If there had been no tax underpaid for CY-1 then the overpaid tax of £100, would be repaid to the taxpayer.