In this section:
  • HMRC delays in using information

HMRC delays in using information

If you think that HM Revenue & Customs (HMRC) should have already collected the tax due in your Tax Calculation (P800) because the information had already been provided to it and HMRC have failed or delayed to use this information, then in some limited circumstances HMRC may agree not to collect it.

An 'Extra Statutory Concession' (ESC A19) allows HMRC to do this and it only applies to individual taxpayers who owe Income Tax and Capital Gains Tax. It does not apply in any other circumstances where amounts owing to HMRC are in dispute.

The circumstances are that HMRC should have used the information provided within 12 months after the end of the tax year in which it is received to notify the taxpayer of any arrears.

This guidance explains the conditions that must apply, who to contact in HMRC if they do and what information you'll need to provide.

On this page:

What counts as information?

The list below shows information that HMRC would normally use to adjust your tax code to make sure you pay the right amount of tax:

  • details of a change in income
  • a new job or additional job
  • a taxable benefit provided by your employer, for example a company car
  • start receiving a work or private pension
  • receipt of state retirement, disability or widow's pension

This list is not exhaustive and each case will be treated on its own set of circumstances. This information can come from a variety of sources - you, your agent, your employer or the Department for Work and Pensions (DWP).

Top

Time limits

The time limit which applies for ESC A19 is where HMRC have failed to use information received about a source of income, within 12 months after the end of the tax year in which the information is received.

For example: on 1 August 2007 HMRC received information about commencement of a new pension in tax year 2007-08 and the end of that tax year is 5 April 2008. HMRC should have either issued a tax code or sent a tax calculation for the above receipt of information before 5 April 2009, which is 12 months after the last day of the tax year 2007-08.

The same time limits apply for any over-repayment of tax that is made in error and HMRC asks for the tax to be paid back.

If no information has been received then ESC A19 cannot be considered.

Exceptional Circumstances

In exceptional circumstances, arrears notified less than 12 months after the end of the relevant tax year may be considered where both of the following apply:

  • HMRC failed more than once to make proper use of information received about a source of income
  • HMRC allowed tax arrears to build up over two whole tax years in succession - so at least two tax year underpayments are due

Top

Reasonable belief that your tax affairs were in order

HMRC will consider the facts and circumstances of any claim that this concession should apply and decide whether it was reasonable for you to believe (prior to receiving the Tax Calculation) that your tax affairs were in order.

Top

Making a claim

If you think this concession applies to you, then, before you pay, you need to telephone HMRC on 0845 300 0627 indicating that you are making a claim under 'ESC A19'.

You will need to provide the following information:

  • what tax year and underpayment the claim relates to
  • what information HMRC failed to make proper and timely use of and any supporting information
  • what date this information was provided
  • reason(s) why you thought your tax affairs were in order prior to receiving the Tax Calculation

HMRC will consider your claim but may need to verify details with you before giving you a decision.

Please note that there is no legal right of appeal but you can ask for another officer to review the decision made.

If you still believe that you should not have to pay the tax after a second review decision has been provided, please read 'How to Complain to HMRC' to decide if your case has not been dealt with properly.

How to complain to HM Revenue & Customs

More useful links

HMRC Extra Statutory Concession guidance booklet (PDF 236K)

HMRC Extra Statutory Concession PAYE manual 'PAYE95000'

Top