Michael Barrett v The Commissioners for HMRC

Michael Barrett v The Commissioners for HMRC

Mr Barrett had a reasonable excuse for failing to notify liability to the HICBC because he was not within self-assessment, his partner's child benefit claim predated the HICBC, he did not receive specific notification from HMRC prior to September 2022, and it was objectively reasonable in his circumstances not to have notified. The penalty is therefore cancelled.

Parties
Appellant: Michael Barrett; Respondents: The Commissioners for His Majesty’s Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
11 October 2024
Procedural Posture
Tax Appeal / First Tier Tribunal Decision on Penalty Appeal
Outcome
Appeal allowed
Legal Topics
High Income Child Benefit Charge, Penalties for Failure to Notify Liability, Reasonable Excuse
Tax Law High Income Child Benefit Charge Penalties for Failure to Notify Liability Reasonable Excuse

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 8 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Michael Barrett

Appellant

The Commissioners for His Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / First Tier Tribunal Decision on Penalty Appeal

Legal Issues

  1. 1 Whether the penalty for failure to notify liability to the High Income Child Benefit Charge was validly issued
  2. 2 Whether the appellant had a reasonable excuse for the failure to notify liability

Ratio Decidendi

Mr Barrett had a reasonable excuse for failing to notify liability to the HICBC because he was not within self-assessment, his partner's child benefit claim predated the HICBC, he did not receive specific notification from HMRC prior to September 2022, and it was objectively reasonable in his circumstances not to have notified. The penalty is therefore cancelled.

Court Disposition

Appeal allowed

Orders

  • The penalty for failure to notify liability to the High Income Child Benefit Charge is cancelled.