Reasonable excuse for HICBC notification failure

HMRC imposed a penalty on the taxpayer for failing to notify his liability to the high income child benefit charge. He appealed saying he was unaware of the charge and his liability to pay it.

He did not know that his income exceeded £50 000 in the years in question and had he realised he had exceeded the limit he would have contacted HMRC immediately. He did not receive the nudge letter that HMRC claimed to have sent him but if he had he would have contacted HMRC immediately. The fact that the letter was not returned to HMRC was not proof that he had received it.

The First-tier Tribunal confirmed first that the penalty was correctly calculated and said it was for the taxpayer to establish he had reasonable excuse. The judge accepted the taxpayer’s assertion that he did not know about the HICBC because he was...