A prudent taxpayer would have reviewed the return

The taxpayer was an employee subject to PAYE. His spouse claimed child benefit in 2010 for their first child but made no claim for the second child who was born in 2012.

The taxpayer was registered for self assessment because he received property income.

In 2013-14 his return (which was prepared by an agent) included the high income child benefit charge (HICBC)even though his adjusted net income was less than £50 000. He returned to self assessment in 2018-19 and declared his liability to the charge in that year’s return.

For the years 2014-15 to 2017-18 he was in receipt of a bonus which fluctuated in amount but which brought his adjusted net income over the £50 000 threshold. HMRC raised assessment to recover the HICBC and issued penalties at 20% of the tax due.

On appeal the First-tier Tribunal upheld the assessments because the appeals against them did...