HICBC: HMRC review of penalties
Earlier this year we highlighted the problems that have arisen when the High Income Child Benefit Charge (“HICBC”) is overlooked. We are glad to see that HMRC has announced that it will review cases where a “failure to notify” penalty was issued for the years 2013/14, 2014/15 or 2015/16.
Penalties will be refunded if HMRC consider that the taxpayer had a “reasonable excuse” for the failure. The review will focus on people who did not themselves claim Child Benefit but are liable to the HICBC because a partner did so, and whose income first exceeded £50,000 (triggering the HICBC) in 2013/14 or later.
HMRC are also writing to people who they think might be liable to HICBC in 2016/17 or 2017/18 to remind them of the need to “notify chargeability” if not already within Self Assessment.
For more information, please get in touch with your usual BKL contact or use our enquiry form.
If you missed our Budget 2018 analysis this week, it’s available here.