Reasonable excuse for not returning charge

The taxpayer’s spouse had been in receipt of child benefit since 1997.

When the high income child benefit charge (HICBC) was introduced in 2012 the taxpayer was an employee not in self assessment. In 2013 HMRC sent letters to higher rate taxpayers including the taxpayer informing them of the charge. The taxpayer did not remember receiving the letter but said he would have ignored it as he was earning less than £50 000.

In 2019 HMRC issued a nudge letter to the taxpayer suggesting that he might be liable to pay the charge and that he should contact HMRC for assistance if necessary. The taxpayer said he had not received the letter and the First-tier Tribunal was not shown any evidence other than a copy of the letter to prove that it had been posted.

HMRC reviewed the taxpayer’s affairs and discovered that...