In some cases, taxpayers have had multiple employments in a tax year, and if they have not notified HMRC, an employer may be operating the wrong code and an underpayment of tax can arise. As most taxpayers do not understand their PAYE codings they automatically assume that HMRC is right. Part of this problem is that employers submit annual returns to HMRC and so taxpayers assume that HMRC, therefore, has the information it requires to issue a correct PAYE coding. No changes have yet been enacted despite many years having passed.Ĭritics of HMRC say that the problem stems from HMRC’s apparent inability to process the data that it receives. It wanted to make it harder for taxpayers to pass the blame for coding errors back to HMRC. HMRC commenced consultations on revising the text of ESC A19 in 2012. This is a freeview 'At a glance' guide to Extra Statutory Concession (ESC) A19. An unexpected tax liability will typically occur when an employer has been operating an incorrect PAYE coding. Extra Statutory Concession (ESC) A19 allows HMRC to not collect certain liabilities in respect of Income Tax and Capital Gains Tax.
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