Car benefits take taxpayer over HICBC threshold

The taxpayer was an employee and had a company car and fuel allowance. His spouse claimed child benefit from 4 November 2013.

In October 2019 HMRC issued a nudge letter setting out the circumstances in which the taxpayer would have to pay the high income child benefit charge (HICBC) and advising him to check whether he needed to pay it. In November 2019 HMRC sent another letter to the taxpayer again suggesting he should check whether he was liable to the HICBC. The taxpayer was unable to recall whether he received either letter.

The taxpayer’s wife opted out of the child benefit allowance in January 2020 after the taxpayer realised that as a result of the company car he was over the adjusted net income threshold. In October 2020 he called HMRC to report that he had cancelled his fuel allowance because as a result of Covid...