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Hammer to crack a nut?
Key points
- Complexities of working out whether the high income child benefit charge applies.
- As a result of an HMRC review in 2018 £1.8m of penalties were cancelled and refunded to taxpayers.
- In 2022-23 514 cases were referred to statutory review and 159 appeals were made to the First-tier Tribunal.
- HMRC should consider how it can identify taxpayers liable to the charge more efficiently.
Since the 2016-17 tax year a growing number of cases have been brought to the First-tier Tribunal (FTT) as result of individuals failing to report their liability to pay the high-income child benefit charge (HICBC). Many of these cases dispute an amount of tax or penalty totalling a few hundred pounds. This has led a number of tax professionals to question is this the best use of HMRC resource?
What is the HICBC?
The HICBC was introduced in 2013 by the then chancellor George Osborne. The...
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