Assessments stand but not penalties

The taxpayer’s wife had claimed child benefit since 2001. The taxpayer was an employee and not required to complete a self-assessment tax return. They were not aware of the high income child benefit charge (HICBC) although according to HMRC’s records in 2013 it sent the taxpayer a generic letter SA252 about the changes to the child benefit regime and the introduction of the HICBC.

In January 2021 HMRC sent the taxpayer a nudge letter about the charge. The taxpayer and his wife said they did not receive either letters. In June 2021 HMRC wrote to the taxpayer to say that it appeared he was liable to the charge. In July 2021 HMRC issued assessments for the years 2012-13 to 2017-18 and 2019-20 because it discovered a loss of tax due to the taxpayer’s earnings exceeding £50 000 a year for those years. It also imposed penalties...