HMRC has no duty to monitor taxpayer’s income

The taxpayer’s partner had claimed child benefit since December 2013. In 2017-18 the taxpayer’s adjusted net income exceeded £60 000 so he was liable to the high income child benefit charge (HICBC).

HMRC issued assessments for five years including discovery assessments for the years 2015-16 and 2016-17. The taxpayer appealed and the discovery assessments were treated as invalid as a result of the decision in CRC v Wilkes [2021] STC 1446. HMRC invited him to settle his appeal for 2017-18 but he did not do this so HMRC issued him a notice to file a tax return for the year.

He submitted the return but rather than complete the HICBC section he stated in the white space ‘child benefit – this sum and supplementary info was not disclosed by my partner as per outstanding appeal’.

HMRC opened an enquiry amended his return...