High Income Child Benefit Charge

Spidernick

Potentially some good news for some of you who have posted here about being charged penalties for not declaring Child Benefit:

https://www.gov.uk/government/news/hmrc-to-review-high-income-child-benefit-charge-penalty-cases

HMRC has announced that it is reviewing cases where a ‘Failure to Notify’ penalty was issued for the tax years 2013 to 2014, 2014 to 2015, and 2015 to 2016, to customers who did not register for the High Income Child Benefit Charge.
The department will review cases for these years and issue penalty refunds if it finds the customer had a reasonable excuse for not meeting their tax obligation.

But note:

The review will not include anyone who received communications from HMRC about High Income Child Benefit Charge or claimed Child Benefit after the charge was introduced in 2012 to 2013.

That should presumably read 'or started to claim Child Benefit after the charge was introduced in 2012 to 2013'.

keepthelinguini

I just wanted to let everyone know that I appealed to the Tax Tribunal and won. I've just received confirmation that I'll receive a refund of everything I was asked to pay.

I'd recommend anyone with a similar grievance to appeal to the Tax Tribunal. I had no representation - it's not necessary, and it's a very simple process.

keepthelinguini

TheCyclingProgrammer wrote: »

You don't have any grounds for appeal I'm afraid so you're wasting your time. Ignorance is not an excuse.

The higher rate benefit charge was well publicised. It's your responsibility to notify HMRC when your income crosses the threshold and submit a self assessment.

Sorry if that's not what you wanted to hear. You may be able to arrange a payment plan with HMRC if you can't afford the repayments now.

Don't forget if you're still earning above the threshold you'll need to submit a tax return for the previous tax year by the end of Jan 2018.

I appealed and I won. I've just received confirmation that I'm going to have everything refunded to me.

Thanks for your support. I hope you're not an accountant or a tax lawyer.

keepthelinguini

[Deleted User] wrote:

I am not sure how anyone on here can help you as there was a huge publicity campaign about this when our dear Mr Osborne introduced this in January 2013. I hope your appeal is successful but, unless you come up with some other good reason, you are doomed to failure.

It doesn't help matters but it should be stated that the one organisation who was aware of your salary was HMRC as your employer is required to notify them electronically each time that you receive a salary payment. You can make your own judgment as to why it has taken two years to catch up with you in respect of 2014/15 tax year.

I appealed and I won.

keepthelinguini

kidmugsy wrote: »

I suppose hmrc think that if you are capable of earning £50k p.a. you should be capable of behaving like an adult. Such sunny optimists.

I appealed to the Tax Tribunal and they found in my favour. It's unreasonable. And your comment now looks even more extraordinarily condescending than it did when you posted it.

keepthelinguini

Wayne_O_Mac wrote: »

There's plenty wrong with the UK tax system, but it's not "unfair" just because someone is too stupid to pay attention to their affairs and responsibilities.

I'm not stupid. I appealed to the Tax Tribunal. I won. I've just received confirmation everything's going to be refunded to me.

Thanks for your support Wayne.

Dazed_and_confused

You say,

everything's going to be refunded to me.

Do you really mean everything i.e. High Income Child Benefit Charge, penalties and any interest (on the HICBC) or do you mean penalties and any interest or do you mean the penalties will be refunded?

Are you aware HMRC recently announced a change in their stance on HICBC penalties, specifically for people in your circumstances where you were under the 50k limit when it was introduced but exceeded it at a later time.

keepthelinguini

Dazed_and_confused wrote: »

You say,



Do you really mean everything i.e. High Income Child Benefit Charge, penalties and any interest (on the HICBC) or do you mean penalties and any interest or do you mean the penalties will be refunded?

Are you aware HMRC recently announced a change in their stance on HICBC penalties, specifically for people in your circumstances where you were under the 50k limit when it was introduced but exceeded it at a later time.

That's because they lost a key case in the Tax Tribunal. Everything is refunded, including penalties and charges.

Dazed_and_confused

So you don't have to pay the HICBC itself despite having ANI greater than £50k?

Sure others will be interested in this as that far outweighs expectations from the links in Spidernick's post of 10 November earlier in this thread.

keepthelinguini

Dazed_and_confused wrote: »

So you don't have to pay the HICBC itself despite having ANI greater than £50k?

Sure others will be interested in this as that far outweighs expectations from the links in Spidernick's post of 10 November earlier in this thread.

The retrospective payments I made to cover the historic years are being refunded. I think the decision is that I was dealt with unreasonably by HMRC in its demands historically. It doesn't mean I don't have to pay the charge going forward - I'm sure I absolutely do!