RDHAPP2 - Appendix 2
Other provisions relating to Revenue mistakes or delays
- Extra-Statutory Concession A19
giving up tax where there are Revenue delays in using
information (formerly Official Error).
ESC A19 is still sometimes known by its old name of Official
Error, for example in parts of booklet IR1 and the SA Manual, but
such references should soon be replaced by something like
“Revenue delays in using information”. The concession
is not strictly about financial redress of the kind described in
the other parts of this handbook, which is why it is not included
in COP1 and why it should be considered separately from other
aspects of the complaint. It is often appropriate to consider A19
even where there has not been a complaint. In any case where ESC
A19 may apply you should test the facts carefully against the
wording of the concession itself, and read the detailed guidance in
SAM, AP4696+or EP6600+. Important general points to bear in mind
are:
- A19 applies only to individuals in respect of their personal tax.
- It covers income tax and capital gains tax and is extended in practice to Class 4 NIC. It does not cover any other class of NIC, or any other tax or duty.
- It does not have to be claimed.
- It is good practice to establish first whether the case falls within the concession (usually a question of fact) before considering the “reasonable belief” test (a question of judgement).
Business Services, Shipley are responsible for the operational administration of the concession and will give advice on difficult or contentious cases. In particular, it will usually be appropriate to obtain their specialist view in complaint cases, including those working with the Adjudicator. SDS, Complaints and Redress, which is responsible for the policy on A19, will be happy to advise on more general difficult issues.
- Extra- Statutory Concession B41
- Repayments outside the normal time limit
Where an overpayment has arisen as a result of an error by the
Inland Revenue or another government department it has for many
years been the department’s practice to make a repayment even
if the claim is outside the statutory time limit. This practice was
published in February 1992 as ESC B41, which formalised the
previous position. The full text of the concession is as follows:
“Under the Taxes Management Act, unless a longer or
shorter period is prescribed, no statutory claim for relief is
allowed unless it is made within 6 years from the end of the tax
year to which it relates.
However, repayments of tax will be made in respect of claims
outside the statutory time limit where overpayment of tax has
arisen because of an error by the Inland Revenue or another
government department, and where there is no dispute or doubt as to
the facts.”
Any such cases on which you require advice should be
submitted to CCP (Technical).
- The Tax Credits (Official Error) Regulations 2003
These regulations came into force from 6 April 2003. They allow
the department to revise an award in favour of the applicant, if
the award was incorrect because of “official error”.
Official error for this purpose is defined as an error relating to
tax credit made by an officer of the Inland Revenue, Department of
Work and Pensions, Department for Social Development in Northern
Ireland or a person providing a service to these departments in
connection with tax credits.
Only errors to which the claimant(s) did not materially
contribute can be considered under these regulations.
