Those of you on the receiving end of a tax demand from HMRC for underpaid taxes emanating from HMRC's reconciliation of its PAYE "backlog" would do well to remember that there may be a way to avoid having to pay these backclaims.
Extra Statutory Concession (ESC) A19, states that HMRC should "forgive" a tax claim if it has not followed its procedures correctly.
HMRC should not claim tax if it has failed to properly use information supplied by a taxpayer, their employer or the Department for Work and Pensions.The Telegraph quotes Jeff Taylor, editor of The Economic Voice:
"This concession applies to income tax and capital gains tax and allows someone to ask to have the tax debt remain uncollected as long as two important circumstances exist.
The first is that HMRC must have been in receipt of all the relevant information and have used it within 12 months from the end of the tax year concerned.
The second is that HMRC must be satisfied that the taxpayer had a 'reasonable’ belief that their tax affairs were in order."
Tax does have to be taxing.
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