You can ask HM Revenue and Customs (HMRC) to cancel tax you owe (‘arrears’) if you think they have made a mistake because they did not act on information they had.
You can do this by asking for an ‘extra-statutory concession’ (‘ESC A19’) if you owe:
- Income Tax, for example because you were on the wrong tax code
- Capital Gains Tax
- Class 4 National Insurance contributions
You can ask for an ESC A19 if all of the following apply:
- HMRC have not used tax information provided to them, for example about a change of income or job
- HMRC told you about the tax you owe more than 12 months after the end of the tax year in which they received your information
- you have a reasonable belief that your tax affairs are up to date
The tax information could have come from:
- your employer
- the Department for Work and Pensions (DWP)
You cannot normally cancel tax owed via Self Assessment, unless there are exceptional circumstances, for example where HMRC:
- told you about 2 or more years of PAYE tax owed
- failed to act on information you’ve given them more than once
How to Make a Claim
Call or write to HMRC to make a claim.
You should do this before you pay any of the tax you owe. But if you have already made a payment, HMRC may be able to refund it.
You must tell HMRC:
- which arrears you are disputing, including the tax year
- the information HMRC should have acted on and when it was provided
- why you thought your tax was up to date
You may be able to delay paying a penalty until your appeal has been settled.
If you Disagree with HMRC’s Decision
- You can ask for the decision to be reviewed if you do not agree with the outcome.