Taxpayer failed to take immediate action

The taxpayer met his partner about six months after he left the army in 2014. He then he moved out of army accommodation and moved in with her. He did not have any children of his own. His partner had claimed child benefit since November 2009 for children with a previous partner.

In January 2021 HMRC wrote to the taxpayer pointing out the high income child benefit charge (HICBC) and when it applied. In June HMRC again contacted the taxpayer to tell him he was liable to the HICBC for the years 2015-16 to 2019-20. After the taxpayer called HMRC it raised discovery assessments for each of the years and imposed penalties for failure to notify liability.

The taxpayer appealed. This was on the basis that he did not have any children of his own and he had no financial responsibility for his partner’s children. He was unaware...