Under the current concession taxpayers that have outstanding tax are able to apply to use ESC A19. This concession writes off the amount owed if the taxpayer can show that HM Revenue & Customs failed to use information at their disposal in a timely manner.
Under the proposed changes taxpayers would be deemed to have a basic level of knowledge and understanding of their own tax affairs. Also, if the taxpayer believes there is an error relating to their tax affairs they would be expected to contact HM Revenue & Customs without delay.
This also brings into question whether there should be a time limit on using the concession as taxpayers have to take ‘personal responsibility’ in making sure their tax affairs are correct.
The proposals are currently under consultation and Eaves & Co are to provide a response as we have successfully assisted clients in claiming under ESC A19 on a number of occasions.
In practice these proposed changes would appear to make it more difficult for taxpayers to make a claim under concession ESC A19 as there is more onus on the taxpayer to make sure their affairs are correct.
Eaves & Co are pleased to announce that HM Revenue and Customs have agreed to allow a claim drafted by us for ESC A19 in relation to 2007/08, 2008/09 and 2009/10 saving our client £5,653.68.
We successfully argued that HM Revenue and Customs should have taken into account information provided in the employer end of year return when determining our clients PAYE code for the relevant year.
If you have receieved a notice of underpaid tax through the PAYE scheme and believe ESC A19 may apply to your circumstance please contact Eaves & Co on 0113 244 3502.
According to the Daily Telegraph, 23% of those who appealed against tax demands issued in 2010 using extra statutory concession A19 were successful.
Some 250,000 pensioners have also had potential tax liabilities waived under the concession.
So it is clear that A19 is being widely used and with some success.
If you have any problems with under payment or believe a tax refund might be due please contact Eaves and Co, Leeds.
Eaves & Co are pleased to announce their first success for ESC A19 saving our client over £5,000 in tax.
2010 saw HMRC in a high profile exercise to gain more tax from individuals in the PAYE system.
There is evidence of assessments now being raised by them in order to claw back tax which the PAYE system hasn’t managed to collect.
If you receive a bill now, then a couple of checks are relevant:-
1) Is the assessment correct, based on your actual income and reliefs for the tax year in question
2) Is it possible for a review to be requested under ESC A19, that HMRC acted on information too late
We dealt with a case recently where HMRC acted late on receipt of form P46 from the individual’s employer.
Call Eaves & Co on 0113 2443502 for a free initial consultation