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Any Tax Experts?

the whistler

Active Member
Back in 2004 I had both a job and a pension. They were both taxed under PAYE but from different tax offices. However they didn't work out my paye code correctly and I underpaid tax for that year. So in 2006/2006 my code was adjusted to recover the underpayment. The following year tax code went back to normal.

Today I received a letter from HMRC saying that they had recalculated my tax for 2004 and found that I am still underpaid by a substantial amount and they are now asking for this.

First question. Is there a time limit for asking for underpaid tax? I understood it was five years, but maybe I am wrong.

Second question. I have found references to 'Extra Statutory Concession' (ESC A19) which seems to suggest that if they failed to act on all information provided to them within 12 months after the end of the tax year, then they are not entitled to claim back the underpayment.

I'm just surprised that after so long they have decided that I still owe tax for that year. They had all the information from my employer and pension provider and of course my own tax returns and as far as I am aware nothing has changed. I guess they just recalculated and decided they hadn't got my code right.

Anyone had experience using ESC A19 to appeal? Any advice welcomed.
 

MIghtyG

Well-known Member
I cant help much but I have heard that the HMRC can and will go back as far as they please to claim taxes back, I know people in work that have had the HMRC go back over 10 years and asked for hundreds of thousands in taxes :(
 

imightbewrong

Distinguished Member
First thing I would do is work out if I actually >did< underpay - then you know if you are trying to avoid paying by looking at the 'fine print' of timelines, or simply finding that they are wrong.

Income tax is paid on your yearly overall income, regardless of how many jobs etc - so if you stick your income in here, how does the tax compare to the tax you've paid? The Salary Calculator - Take-Home tax calculator Doesn't go back as far as 06/07 - I'm sure there is one that does.
 

qwakuk

Active Member
'Extra Statutory Concession' (ESC A19) which seems to suggest that if they failed to act on all information provided to them within 12 months after the end of the tax year, then they are not entitled to claim back the underpayment.

Yes, this works

Write back and claim ESC A19 in the letter mention earlier correspondence, they will write back and say you owe the money. Write back again and say ESC A19.

Biggest one i got cancelled is £15,000 !

Technically the guy owed the money, but he told them in writing codes numbers were wrong, at the time they wrote back and said everything ok and you owe nothing.

They will cancel it if you can prove they previously said it was cleared.
 

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