HMRC has announced that it is reviewing cases where a failure to notify penalty was issued to taxpayers who did not register for the High-Income Child Benefit Charge.

The High-Income Child Benefit Charge (HICBC):

  • Applies when an individual or their partner is in receipt of Child Benefit, and one of those persons has net income in excess of £50,000 per year.
  • Taxpayers who must declare the HICBC are required to notify chargeability to HMRC by registering for SA.

The HMRC review will apply to 2013-2014, 2014-2015, and 2015-2016 and refunds of Failure to notify penalties will be issued if HMRC finds the taxpayer has a Reasonable excuse for not registering.

Cases where HMRC have said they may accept that a reasonable excuse exists include:

  • Where a claim for Child Benefit was made before the HICBC was introduced.
  • Where one partner’s income subsequently increased to over £50,000 in or after the 2013-2014 tax year.

The review will not include anyone who received communications from HMRC about HICBC or first claimed Child Benefit after the charge was introduced in 2012 to 2013. Refunds will be made over the next 6 months.

Useful guides on this topic

High-Income Child Benefit Charge (HICBC)  

Grounds for appeal: Taxpayer ‘reasonable excuse’

External link

HMRC to review High-Income Child Benefit charge penalty cases