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.

NICOLA HALL

BILSHAN MENSAH

Sam Inkersole

In 2022, Sam won the Taxation’s Rising Star award at the Taxation Awards in and was named in the Accountancy Age 35 Under 35.

Jon Wedge

While Jon’s client work focuses on the financial services sector, he also oversees the firm’s assurance service, as well as supporting the trainees following in his footsteps.

ELANA DIMMER

Elana joined us in 2017 as an ACA trainee, after graduating from Durham University where she had studied languages. She is now a manager in our assurance team.

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