Callen v Revenue & Customs (Income tax - Higher income child benefit charge) [2020] UKFTT 253 (TC) (12 June 2020)

Callen v Revenue & Customs (Income tax - Higher income child benefit charge) [2020] UKFTT 253 (TC) (12 June 2020)

The appellant did not have a reasonable excuse for failing to notify liability to the HICBC, as ignorance of the law and mistakes in calculating income do not constitute reasonable excuse. The penalties were validly assessed and correctly calculated, with the exception of a minor calculation error for 2012/13, which was corrected.

Citation
[2020] UKFTT 253 (TC)
Parties
Appellant: David Callen; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
12 June 2020
Procedural Posture
Tax Penalty Appeal / First Tier Tribunal Decision
Outcome
Appeal dismissed
Legal Topics
Income Tax, Higher Income Child Benefit Charge, Failure to Notify, Penalties, Reasonable Excuse
Tax Law Income Tax Higher Income Child Benefit Charge Failure to Notify Penalties Reasonable Excuse

Case Brief

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Parties

David Callen

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Penalty Appeal / First Tier Tribunal Decision

Legal Issues

  1. 1 Whether the appellant had a reasonable excuse for failing to notify liability to income tax under the higher income child benefit charge (HICBC)
  2. 2 Whether the penalties assessed by HMRC were valid and correctly calculated

Ratio Decidendi

The appellant did not have a reasonable excuse for failing to notify liability to the HICBC, as ignorance of the law and mistakes in calculating income do not constitute reasonable excuse. The penalties were validly assessed and correctly calculated, with the exception of a minor calculation error for 2012/13, which was corrected.

Court Disposition

Appeal dismissed

Orders

  • Penalties for 2012/13 (with correction), 2013/14, 2014/15, and 2015/16 upheld
  • Appeal refused