Lack of awareness justified by absence abroad

The taxpayer and his family lived in Australia for ten years returning to the UK in July 2015. His wife applied for child benefit soon afterwards but did not mention the high income child benefit charge to her husband. In October 2019 HMRC told the taxpayer that he might be liable to the charge. After this he provided information to HMRC and paid the outstanding tax. His wife then cancelled the claim.

HMRC  imposed a ‘failure to notify’ penalty for 2016-17 but not for 2017-18 because it considered the taxpayer’s disclosure unprompted and made less than 12 months after the tax first became unpaid by reason of the failure.

The taxpayer appealed against the penalty saying he had a reasonable excuse because he had been in Australia when the charge was introduced.

The First-tier Tribunal said the taxpayer’s absence from the UK during the time the charge was...