HMRC Cancels Penalties Charged To 6,000 Families

The High Income Child Benefit Charge (HICBC) was introduced in January 2013 and applies a charge to taxpayers whose income exceeds £50,000 in a tax year and who are in receipt of child benefit. The charge claws back the financial benefit of receiving child benefit either by reducing or removing the benefit entirely.

HMRC has been reviewing a significant number of cases where a failure to notify penalty was issued for the tax years 2013-14, 2014-15, and 2015-16, to taxpayers who did not register for HICBC. Under normal circumstances, HMRC would only entertain a claim for a reasonable excuse directly from a taxpayer. However, in these cases, HMRC are proactively dealing with reviews and claims.

The review has resulted in penalties being cancelled for over 6,000 families who were found to have had a reasonable excuse for not notifying their liability for the years in question. Refunds were made in 4,885 cases and totalled £1.8 million. These refunds have already been issued to those affected.

 

Posted by Cassey Nixon on

1st July 2019

Categories

  • Tax Implications for Construction Industry

    If you run a construction business and secure the services of sub-contractors, or if you are a sub-contractor, you will need to comply with a special set of tax rules known as the Construction Industry Scheme (CIS). The CIS rules determine the tax and National Insurance treatment for those working in the construction industry. Under […]

    Andrea L Richards | Accounts Navigator Associates Limited
  • What Is a Joint Venture?

    A joint venture is a commercial enterprise undertaken by two or more parties who otherwise retain their separate identities. The parties to the joint venture usually bring together different resources and areas of expertise to help fulfil a specific project. HMRC makes the point that on close examination of these associations prove to be partnerships, […]

    Andrea L Richards | Accounts Navigator Associates Limited