Tax Forum :: Free Tax Advice

Many readers will already be aware that HMRC is "consulting" on plans to limit the application of a very important concession (ESC A19) which allows HMRC to forego tax when it has taken too long to act on information provided by the taxpayer - such as tax returns, telephone calls and the like.

TaxationWeb has long championed the use of the concession - see for instance http://www.taxationweb.co.uk/tax-articl ... stoms.html. The latest news about the progress of the consultation - that in effect HMRC may already be acting as if the proposals are 'law' - is worrying. But worse, we are told that HMRC has told its own employees that they face disciplinary action, if they now accept an ESC A19 case. ( http://www.taxationweb.co.uk/tax-articl ... onest.html ). If accurate, this is beyond worrying and squarely in the territory of outrageous and unsupportable behaviour.

We want to know what you think about this - is it important? Does it make a difference? Please vote and let us know. HMRC's consultation runs until 24 September

Yes - in fact if anything ESC A19 should be made to apply in more cases

To hear that HMRC believe itself to be above the law is indeed worrying but not surprising given its need for funds . Will it be possible to do anything about it.?

Something should be done about this, HMRC are paid by the public out of publics own funds, they're not a cut above the public and given the state of their computer systems and provocation towards pushing everyone into 'paying on account' whether they want to or not - or even have the income to, this move is extremely worrying. The law is the law .

The history of tax - plain for all to read about on the web, is that there was no income tax at all on a regular basis other than when it was introduced to fight the Napoleonic Wars in the 1800's. During the 1800's the public lobbied govt, voted against income tax per-ce -and won. Each year parliament still has to vote on the next years tax levels because income tax is still legally a temporary tax which can only apply for one year.

With that in mind, surely a complaint to the local MP is worth a scribble?

I am pleased to say that after nearly a year of negotiations with HMRC and several refuses to agree the claim, they finally agreed on the second review.

This resulted in my client saving over £4.5K in tax under payments, HMRC also paid £90 compensatation and are reimbursing my fees to the client.

Smiles all round

Another success!

In this case a pensioner with 4 different pensions. HMRC made a mess of the PAYE codes and issued P800s for 2008/09 and 2009/10 in August 2010 showing underpayments of about £900 for each year. I claimed ESC A19 then and they agreed.

They then failed to put right the problem and underpayments of about £800 each arose for 2010/11 and 2011/12. They refused ESC A19 for these two years.

I wrote to the Adjudicator in November 2012 and I have heard today that HMRC have backed down and will apply ESC A19 for the two later years and pay compensation of £170.

HMRC had writeen a report to the Adjudicator in May 2013 which covered 11 full sheets of A4 with small type! What a waste of public money!

To hear that HMRC believe itself to be above the law is indeed worrying

I don't understand this comment. By applying any concessions HMRC is acting above the law. By withdrawing all concessions, HMRC would be acting in accordance with the law.

Problem is Taxpayers have "No Rights" (not even to use tribunals) so there is No Consistency. HMRC does ignore the law, regulations, taxpayers charter etc. as there is no one to hold them to account. No one has ever reached the "end" of the IRev Complaints and Compensations System. which has no time or cost limits, and even if you are awarded Compensation, HMRC can refuse to pay. If Taxpayers had "Rights" (like Animals & Humans ) these problems would not arise.

Yes - it is unfair to limit discretion to forego tax when HMRC has made a mistake or failed to act and they must keep ESC A19 as it stands

HMRC giving itself a get out for being increasingly inefficient and increasingly unable to accurately support our ever increasingly arcane tax system.

Concessions should continue, but unfortunately I can’t see how to vote.