Child benefit penalties cancelled for 6,000 families

In its review into high income child benefit charge (HICBC) cases in which a ‘failure to notify’ penalty was issued HMRC considered 35 000 instances covering the years 2013-14 to 2015-16 and cancelled more than 6 000 penalties.

The department has sent refunds to families that claimed child benefit before the HICBC was introduced and where one partner’s income subsequently exceeded the £50 000 threshold. 

It has also refunded families whose liability to the charge arose in 2013-14 2014-15 or 2015-16 as a result of the formation of a new partnership.

So far it has made refunds in 4 885 cases totalling £1.8m. All taxpayers entitled to a refund will now have received one and do not need to contact HMRC.

The department says it will improve child benefit forms guidance and communications setting out options to pay the charge or to claim child benefit but elect not...