McCarthy v Revenue & Customs (High Income Child Benefit Charge penalty) [2020] UKFTT 182 (TC) (08 April 2020)

McCarthy v Revenue & Customs (High Income Child Benefit Charge penalty) [2020] UKFTT 182 (TC) (08 April 2020)

The Tribunal held that HMRC was not obliged to notify the appellant of the legislative change, and that non-receipt of HMRC's letters did not constitute a reasonable excuse. The appellant, as a reasonable taxpayer affected by the legislation, should have made himself aware of the changes. The appeal was dismissed as no reasonable excuse was established.

Citation
[2020] UKFTT 182 (TC)
Parties
Appellant: Robert McCarthy; 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 dismissed
Legal Topics
High Income Child Benefit Charge, Failure to Notify Liability, Reasonable Excuse, Tax Penalties
Tax Law High Income Child Benefit Charge Failure to Notify Liability Reasonable Excuse Tax Penalties

Case Brief

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Parties

Robert McCarthy

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 notify the appellant of the legislative change
  3. 3 Whether non-receipt of HMRC letters constitutes a reasonable excuse

Ratio Decidendi

The Tribunal held that HMRC was not obliged to notify the appellant of the legislative change, and that non-receipt of HMRC's letters did not constitute a reasonable excuse. The appellant, as a reasonable taxpayer affected by the legislation, should have made himself aware of the changes. The appeal was dismissed as no reasonable excuse was established.

Court Disposition

Appeal dismissed

Orders

  • Penalties upheld against the appellant