High Income Child Benefit Charge penalty for failure to notify chargeability

Not strictly an area of law we cover but may be of interest as a tax tribunal case relating to child benefit and tax penalty in connection with high income charge – the penalty was not overturned but reduced due to HMRC failings -judge’s comments include –

‘To my mind these penalties raise the uncomfortable spectacle of one arm of HMRC penalising a taxpayer for not telling them that another arm of HMRC made a payment to him or his partner…

… a taxpayer is potentially penalised for not letting HMRC know that he has chargeable income so that they can send him a tax return in which he can tell them what they already know.’


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