Brazier v Revenue & Customs (High Income Child Benefit Charge (HICBC)) [2020] UKFTT 185 (TC) (08 April 2020)

Brazier v Revenue & Customs (High Income Child Benefit Charge (HICBC)) [2020] UKFTT 185 (TC) (08 April 2020)

The tribunal found that the appellant's ignorance of the HICBC requirement was reasonable in the circumstances, as he had not encountered the HMRC information campaign, believed HMRC had the necessary information via PAYE, and acted promptly to rectify the situation once notified. Therefore, the penalties for failure to notify were not due.

Citation
[2020] UKFTT 185 (TC)
Parties
Appellant: Kevin Brazier; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
08 April 2020
Procedural Posture
Tax Penalty Appeal / First Tier Tribunal Decision
Outcome
Appeal allowed
Legal Topics
High Income Child Benefit Charge, Failure to Notify Penalty, Reasonable Excuse, Self Assessment Obligations
Tax Law High Income Child Benefit Charge Failure to Notify Penalty Reasonable Excuse Self Assessment Obligations

Case Brief

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Parties

Kevin Brazier

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 the High Income Child Benefit Charge (HICBC)
  2. 2 Whether HMRC was obliged to inform the appellant of the change in law

Ratio Decidendi

The tribunal found that the appellant's ignorance of the HICBC requirement was reasonable in the circumstances, as he had not encountered the HMRC information campaign, believed HMRC had the necessary information via PAYE, and acted promptly to rectify the situation once notified. Therefore, the penalties for failure to notify were not due.

Court Disposition

Appeal allowed

Orders

  • Penalties for failure to notify liability to HICBC for tax years 2012/13 to 2015/16 are cancelled.