Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

HMRC resources used to fight HICBC penalties

169015
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...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

FIVE WAYS TO MAKE ACCOUNTS PRODUCTION AND TAX EASIER.
Download the exclusive Xero
free report here.

New queries
Please email any questions you might have
to: taxation@lexisnexis.co.uk.

back to top icon