High Income Child Benefit Charge penalty cases will be reviewed and refunds issued if it is found that the customer had a reasonable excuse for not meeting their tax obligation, HM Revenue & Customs (HMRC) has announced.<\/p>\n
The tax authority said it would review cases where a \u2018Failure to Notify\u2019 penalty was issued for the tax years 2013\/14, 2014\/15 and 2015\/16.<\/p>\n
Legally, taxpayers who have an individual income over \u00a350,000 and either they or their partner receives Child Benefit must pay a tax charge, known as the \u2018High Income Child Benefit Charge\u2019.<\/p>\n
The charge is collected through self-assessment or the pay as you earn (PAYE) system, so those eligible to pay the charge must register to complete a tax return.<\/p>\n
However, HMRC has said it will review cases during certain tax years and issue refunds where it finds the customer had a \u201creasonable excuse\u201d for not registering for the charge.<\/p>\n
According to the Revenue, a \u201creasonable excuse\u201d is something that stopped someone from meeting a tax obligation which they took appropriate care to meet. It added that decisions on \u201cwhat constitutes a reasonable excuse\u201d are based on an \u201cobjective assessment of individual circumstances\u201d.<\/p>\n
\u201cNormally customers have to explain why they have a reasonable excuse. However, following feedback, HMRC is proactively reviewing these cases,\u201d the tax authority said.<\/p>\n
It says this includes families who made a claim for Child Benefit before High Income Child Benefit Charge was introduced, and where one partner\u2019s income subsequently increased to over \u00a350,000 in or after the 2013 to 2014 tax year.<\/p>\n
\u201cThis is because the higher earner in a household who pays the charge may not be the same person claiming Child Benefit on behalf of the household,\u201d added HMRC.<\/p>\n
If you received a penalty during this time you do not have to do anything. HMRC will proactively contact you if you qualify for a refund.<\/p>\n","protected":false},"excerpt":{"rendered":"
High Income Child Benefit Charge penalty cases will be reviewed and refunds issued if it is found that the customer had a reasonable excuse for not meeting their tax obligation, HM Revenue & Customs (HMRC) has announced.<\/p>\n","protected":false},"author":2,"featured_media":2726,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,28,7,27],"tags":[],"_links":{"self":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/2724"}],"collection":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=2724"}],"version-history":[{"count":1,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/2724\/revisions"}],"predecessor-version":[{"id":2725,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/2724\/revisions\/2725"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media\/2726"}],"wp:attachment":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=2724"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=2724"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=2724"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}