The taxpayer’s appeal against penalty assessments for failure to notify liability to the high-income child benefit charge was allowed as the taxpayer’s circumstances fell within HMRC’s policy relating to penalty refunds. 

For the tax years 2013/14 to 2015/16, the appellant’s adjusted net income exceeded £50,000, and his partner had received payments of child benefit since 22 November 2004 for their first child, and for two children since 2008 when their second child was born. In August 2018, HM Revenue and Customs (HMRC) wrote to the appellant pointing out he had failed to notify his liability to the high-income child benefit charge (HICBC). 

The appellant replied, confirming liability to the HICBC. He made full disclosure of his income and the child benefit his partner received. HMRC issued assessments of HICBC, which the appellant accepted. HMRC also issued penalty assessments. The appellant appealed against the penalty