Prior to Christmas and during the peak of the tax return season, we saw agents receiving yet another nudge letter from HMRC.
HMRC are writing to agents to remind them of the Tax Return entries relating to the High Income Child Benefit Charge (HICBC).
A typical scenario is where one person receives Child Benefit but another has adjusted net income over £50,000. The taxpayer with the highest income (above £50,000) is responsible for including the HICBC in their tax return. Failure to do so can result in penalty on top of the tax and any interest due.
HMRC are prepared to send each agent a list of taxpayers who don’t include HICBC on their tax returns or include the wrong amount. But each agent must request this (by email or by post) as it will not be done automatically.
Ignore HMRC at your peril (and at your client’s peril).
If you need any assistance, please contact me at firstname.lastname@example.org.