Ignorance of the obligation to notify was established

The taxpayer’s wife had received child benefit since February 1999. In January 2015 she filed a self-assessment tax return for 2013-14 confirming she was the higher earner for that year and declaring liability for the high income child benefit charge (HICBC).

In January 2021 HMRC sent the taxpayer a nudge letter advising him to check whether he was liable to the HICBC. He called HMRC on receipt of the letter. As a result the HMRC officer discovered he had not notified chargeability to the charge for the years 2012-13 to 2018-19. HMRC issued discovery assessments for the years 2012-13 to 2018-19 along with penalties. HMRC later withdrew the assessment and penalty for 2013-14.

The taxpayer wrote to HMRC saying he wished to appeal against the assessments for 2012-13 to 2015-16 and the entire penalty. This was because he had never been required to complete a tax return...