Failure to offer a statutory review of a high income child benefit charge

In January 2018, HMRC issued the taxpayer assessments for the high-income child benefit charge.

The taxpayer replied that he was employed and he paid his tax through PAYE. After further discussion, HMRC asked the taxpayer if he wished to appeal. More correspondence followed and, eventually, HMRC wrote asserting the taxpayer had made an appeal. Some time later and after yet more correspondence, the taxpayer appealed against the assessments to the First-tier Tribunal. HMRC objected on the ground the appeal was late.

The tribunal accepted that the taxpayer had made an appeal to HMRC, but found that the department had not offered him a statutory review. As a result, under TMA 1970, s 49D(2), no time limit had been set for the taxpayer to notify an appeal to the tribunal. So the notification he eventually gave was not late.

The taxpayer’s application to make a late appeal was allowed.

Issue: 4738 / Categories: Tax cases