Assessments were not protected

After receiving a nudge letter on 7 January 2021 about the high income child benefit charge (HICBC) the taxpayer contacted HMRC to say he was liable to the charge. On 1 May 2021 HMRC raised discovery assessments for the years 2015-16 to 2018-19 as well as penalties for late notification.

The taxpayer appealed.

The First-tier Tribunal accepted that the taxpayer had a reasonable excuse until 7 January 2021 and that he acted without delay to rectify matters when he understood he was liable to the HICBC. In essence the tribunal found that until he received the nudge letter his earnings were ‘sufficiently under the £50 000 threshold that there was little or no immediate risk that he was or would shortly become liable to the charge’. HMRC’s publicity about the charge was not specifically aimed at someone in his position.

Following CRC v Wilkes [2021] STC 1446...