Do I have a valid case under ESC A19?
In Feb 2017 I was contacted by HMRC to complete self assessment, because I had updated personal info on their site for the first time. This was the first time I had ever been contacted by HMRC to inform me I had to complete self assessment. Completed self assessments in March 2017 resulted in a tax bill of nearly £7k for years 2013/14, 2014/5 & 2015/16 in April 2017. I have twice appealed under ESC A19, but have been rejected. HMRC had my salary information via PAYE, e.g.P60, that confirmed over £100k for each of these years and took no action. I was unaware I needed to file self assessment. My case was rejected stating in 13/14 they used “the latest full year details available from 2011/12” to calculate the tax code (estimated salary £64k). This shows they use full year data to calculate tax codes, which they had for subsequent years showing over £100k from 2013/14 onwards and failed to act. I have been passed to their debt collectors. Advice would be highly appreciated.
From your question it sounds like the tax underpayment is due to your personal allowance being restricted because your income was over £100,000.
If your income from PAYE was over £100k then HMRC would issue with a P800 and would have adjusted your tax code as appropriate.
I suspect that you may have other income which has taken your total income over £100k.
Unfortunately if your income exceeds £100,000 you do have to file a self assessment.
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On this basis I think it would be difficult to argue that the ESC A19 applies.
HMRC do expect individuals to tell them about changes in circumstances and check their tax code to ensure the information included is correct and up to date.
If my assumptions are incorrect then please do get in touch and I can consider the situation again.
Advice given is for illustration purposes only and should not be relied upon for your tax planning or tax affairs. We recommend that you seek the advice of a suitably qualified accountant before making any tax planning decisions.