Toby Hextall v The Commissioners for HMRC

Toby Hextall v The Commissioners for HMRC

The Tribunal found that the appellant did not fail to take reasonable care and had a reasonable excuse for not notifying HMRC of his HICBC liability for 2015-16 and 2016-17, due to lack of clear guidance and communication from HMRC. Therefore, the assessments for those years were out of time and invalid. However, the assessment for 2017-18 was within the ordinary four-year time limit and must stand.

Parties
Appellant: Toby Hextall; Respondents: The Commissioners for His Majesty’s Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
11 September 2024
Procedural Posture
Tax Appeal / First Tier Tribunal Judgment
Outcome
Appeal allowed in part
Legal Topics
High Income Child Benefit Charge, Discovery Assessments, Reasonable Care, Reasonable Excuse, Time Limits for Assessment
Tax Law High Income Child Benefit Charge Discovery Assessments Reasonable Care Reasonable Excuse Time Limits for Assessment

Case Brief

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Parties

Toby Hextall

Appellant

The Commissioners for His Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / First Tier Tribunal Judgment

Legal Issues

  1. 1 Whether discovery assessments for HICBC were made within statutory time limits
  2. 2 Whether the appellant took reasonable care or had a reasonable excuse for failing to notify liability
  3. 3 Whether retrospective legislative changes applied to invalidate the assessments

Ratio Decidendi

The Tribunal found that the appellant did not fail to take reasonable care and had a reasonable excuse for not notifying HMRC of his HICBC liability for 2015-16 and 2016-17, due to lack of clear guidance and communication from HMRC. Therefore, the assessments for those years were out of time and invalid. However, the assessment for 2017-18 was within the ordinary four-year time limit and must stand.

Court Disposition

Appeal allowed in part

Orders

  • Assessment for 2017-18 (£1,076) upheld; appeal refused for this year
  • Assessments for 2015-16 (£307) and 2016-17 (£1,076) set aside; appeal allowed for these years