The taxpayer had a reasonable excuse for failing to notify the high-income child benefit charge so penalties were cancelled and two assessments were set aside as out of time, but ESC A19 could not be considered by the First-tier Tribunal (FTT) due to a lack of jurisdiction.

In 2000, the appellant’s partner (Ms A) and her then-partner had a son. Ms A claimed child benefit. Ms A’s entitlement to child benefit was recorded on the HM Revenue and Customs (HMRC) system as beginning, and child benefit was paid into her bank account. Subsequently, Ms A and her partner separated; Ms A retained custody, and her partner was required to pay child support. Ms A later began a relationship with the appellant, and in 2006 they had a daughter. The child benefit payable to Ms A increased to reflect that she now had two children. Ms A and the appellant lived together but kept their financial affairs separate. 

In 2016/17, the appellant’s earnings