ESC A19 clause success

JohnT1974

Just thought I would share my recent experience....

I received this year two P800 forms (tax calculation) for the years 2007/2008 and 2008/2009. The sum result was that I owed £1371.30 in income tax which would be collected through my tax code during the year 2011/2012.:mad:

As part of the calculations on both of these forms, it included 3 recent P87 submissions (business mileage tax relief up to £0.40/mile up to 10,000 miles) for the years 07/08, 08/09 and 09/10 totalling approximately £3300.00. Without submission of these claims, my underpayment of tax would have been almost £5000.00. :mad:

I challenged the calculations and it appeared as if they had included the full year tax benefit in my tax code for the company car I had for a previous employer in the tax year 07/08. I only had the car for 8 months in that year.

As a result, I spoke to HMRC today who have confirmed that their calculations were incorrect and were increasing my personal tax code from 457L to 604L, still owing £784.00 for underpayment for that year.

HMRC claimed that they had no record of me having a company car during that year (07/08) and hence my tax code for that year was incorrect.

Anyway, I applied over the phone for exemption from paying the underpaid tax due to that little known rule (ESC A19) which goes along the lines that the tax underpayment will be written off if it can be proven that HMRC failed to act in a timely manner with the information they had been provided by my employer in that year.

As a result, they have accepted that they had received my P11D's for the years 06/07 and 07/08 and failed to act in receipt of them, claiming underpayment of tax in the tax year 11/12. RESULT!

My tax code is being changed to 747L (as it should be) and the tax underpayment is being written off.

I also asked the question that if my tax is being written off due to HMRC not acting in a timely manner on information submitted to them, then what is to happen with my P87 claims for the tax years 07/08, 08/09 and 09/10.
I am awaiting a phone call back from them as the lady I spoke to was unsure. I am not expecting a cheque through the post but stranger things have happened.

:j:beer:

suso

JohnT1974 wrote: »

little known rule (ESC A19)

:j:beer:

had to laugh at this 100 posts in this forum alone, 91,000,000 on a google search.

JohnT1974 wrote: »

Just thought I would share my recent experience....

I also asked the question that if my tax is being written off due to HMRC not acting in a timely manner on information submitted to them, then what is to happen with my P87 claims for the tax years 07/08, 08/09 and 09/10.
I am awaiting a phone call back from them as the lady I spoke to was unsure. I am not expecting a cheque through the post but stranger things have happened.

:j:beer:

you can not have some tax written off for a certain tax year and then claim a refund for the same year - HMRC will calculate the correct tax due for that year and then refund / collect it.

Each year is individually assessed, tax written off in 07/08 would not affect any refund for 8/9