HMRC Tax Dispute - Liability for retro tax

COLINCOLINMOORE

I am regrettably involved in a tax dispute with HMRC.

It hinges on the accuracy/reasonableness of former tax returns.

I have heard (on a BBC news programme) that there is some law/statute referred to as "section 19" under which if a tax return was made in a clear, open and fair manner HMRC can not subsequently seek to recover from a taxpayer money which they did not ask for at the time.

Could anyone please give me a pointer as to where to find "section 19" rule(s). In which act is it contained, and can you comment upon its circumstances of applicability please?

All replies welcomed.

gordikin

Did you try Google?

COLINCOLINMOORE

Yes. However while I found reference to "section 19" I could not find reference to circumstances under which tax can be writen off if good clear tax returns have been submitted but HMRC has failed to spot errors at the time of submission.

p00hsticks

COLINCOLINMOORE wrote: »

Yes. However while I found reference to "section 19" I could not find reference to circumstances under which tax can be writen off if good clear tax returns have been submitted but HMRC has failed to spot errors at the time of submission.

I'm not clear on what you are saying here - either the tax return was accurate (which I assume you mean by 'good clear') or there were errors in it - which was it ? If any relevant information was omitted or wrongly reported in the form then I don't think you will be able to appeal....

I think the information you need on 'Extra-Statutary Concession A19' can be found here

http://www.hmrc.gov.uk/specialist/esc.pdf


The relevant piece being

A19. Giving up tax where there are Revenue delays in using information
Arrears of income tax or capital gains tax may be given up if they result from the Inland Revenue's failure to make proper and timely use of information supplied by:

• · a taxpayer about his or her own income, gains or personal circumstances
• · an employer, where the information affects a taxpayer's coding; or
• · the Department for Work and Pensions, about a taxpayer's State retirement, disability or widow's pension.

Tax will normally be given up only where the taxpayer:

• · could reasonably have believed that his or her tax affairs were in order, and
• · was notified of the arrears more than 12 months after the end of the tax year in which the Inland Revenue received the information indicating that more tax was due, or
• · was notified of an over-repayment after the end of the tax year following the year in which the repayment was made.

In exceptional circumstances arrears of tax notified 12 months or less after the end of the relevant tax year may be given up if
the Revenue

• · failed more than once to make proper use of the facts they had been given about one source of income
• · allowed the arrears to build up over two whole tax years in succession by failing to make proper and timely use of information they had been given.

Gertie_Walker

I think you are referring to Extra Statutory Concession A19. This states that when a liability arises for years prior to the last tax year and the taxpayer reasonably expected his affairs to be up to date, having advised HMRC, the arrears can be cancelled.
The details are here:
http://www.hmrc.gov.uk/esc/esc.htm

suso

COLINCOLINMOORE wrote: »

Yes. However while I found reference to "section 19" I could not find reference to circumstances under which tax can be writen off if good clear tax returns have been submitted but HMRC has failed to spot errors at the time of submission.

what errors are you referrng to.

There is very little chance of appealing against tax due to self assessment as you are declaring your income. If you have missed information off the return then it would be viewed that you have made a fraudulent claim.

If it is a question of a mistake in the calculation then an appeal would be more likely be successfull