HICBC Landmark Case could result in Refunds for 100's of thousand of victims

nickfezz

Looks like we could be in line for full refunds.  I fall into this category as I'm sure lots of others too.

https://ifamagazine.com/article/hundreds-of-thousands-of-taxpayers-to-benefit-as-hmrc-loses-landmark-case-challenging-high-income-child-benefit-charge/

ams006

Yep I saw this yesterday too. What great news. I fall into this category also and it would be great to get a refund. 

Is there any further news on HMRC actually issuing the refunds seeing as they lost the case?

Dazed_and_C0nfused

I think a (retrospective) change to the tax legislation is more likely than refunds of HICBC that was due.

markgul

It would be very unfair to not make any refunds, I also fall into this category and they backdated it by 4 years

markgul

Has anyone called HMRC to find out if a refund is now due?

sheramber

Those affected are those who did not fill in a self assessment return for the years in question. Instead HMRC raised an assessment for an assumed amount received.

If you completed a self assessment return and were assessed on that basis then you are one of the people affected.

It is possible for HMRC to now proceed under a different legislation to recover the money originally raised under the discovery assessments so don't spend any money yet.

nickfezz

I have just contacted HMRC regarding this.  I have been told that all cases are temporarily suspended for 30 days whilst HMRC calculate a response to the judgement.

I have been told to write to them stating that I request full reimbursement of all money taken via the "discovery assessment" vehicle.

If there is even the slightest chance of me having my money returned (£9,000.00) then i want to be 1st in the queue.

Momanns

Am I misunderstanding this...if people have completed annual assessments and paid the (wholly unfair & disproportionate) charge on time then tough, but people who didn't pay it and subsequently had to repay for years legitimately owed may have grounds to reclaim money from HRMC?

kuratowski

It's like sheramber said.
The tribunal ruled that:

• A taxpayer who failed to pay HICBC had not paid the right amount of tax; but
• HMRC used the wrong powers to demand that money; but
• HMRC has other powers available that they can use instead; and
• HMRC has 20 years to pursue the underpaid tax.

https://www.rossmartin.co.uk/sme-tax-news/5606-hicbc-is-not-income-under-the-discovery-rules
So, I don't think a refunds are likely at all.

ImNearlyThere

I biust found this in the news. Seems like I'm late to the party. Has there been any response from Martin Lewis? I'm sure a template is being produced. I'll be overstated to see your this progresses