Lack of awareness of the charge is no excuse

The taxpayer’s spouse began receiving child benefit in 2011. Before 2018-19 the taxpayer’s earnings were below the notification limit. In June 2021 HMRC contacted the taxpayer to say he was liable to the high income child benefit charge (HICBC). A few days later he contacted HMRC and agreed the amounts due. HMRC issued an assessment and also late notification penalties on the basis of non-deliberate and prompted behaviour.

The taxpayer appealed. He said he did not know about the charge until HMRC wrote to him in June 2021. He had not received an awareness letter allegedly sent to him in 2019. Further his income exceeded the £50 000 limit for one year only due to a long service award.

The First-tier Tribunal accepted that the 2019 awareness letter had been sent but the taxpayer had not received it. The judges also accepted the taxpayer’s position that he...