Evidence supported reasonable excuse for HICBC notification failure

HMRC imposed penalties on the taxpayer for failure to notify high income child benefit charge (HICBC). The taxpayer appealed. He said he was not aware that his partner was claiming child benefit or of the liability to the charge. All of his earnings were taxed under PAYE and HMRC had advised him before the introduction of the charge that he did not need to complete tax returns. He claimed not to have received letters from HMRC in 2018 advising him of the liability but became aware only when he received a letter in January 2019. In support of this he said the post office often misdelivered items addressed to him to another property with a similar address.

Finally he paid the liability and the interest immediately he became aware of it which showed that he was not trying to evade tax.

The First-tier Tribunal noted that...