HIBC and Failure to Notify

[Neilsc99]

Hi,

Im looking for some advise regarding HIBC and failure to notify.

to keep it simple and short, i appealed the penalty charge and interest the HMRC asking me to pay, the actual tax on my HIBC i understand i need to pay but i advised them i was to appealing the other charges, wrote to them in full with explanation on why i should not be paying.

i got a letter back basically saying i need to pay these fee's.

the actual cost of interest and penalty is appx £800 but i feel i should not have to pay these due to the reason i put in my letter.

They have said i can take it to tribunal, has anyone does this before ? i feel the letter i got back from HMRC was very patronizing to a certain degree and even though they responded back to the questions and comments i put im my letter to them it did feel letter was very generic.

so it worth going to tribunal ?

Many thanks for your help in this matter, im on PAYE so i just pay as i earn so i dont know much about tax but it seems the HMRC believe i should know more

Many thanks, Neil

[Jholm]

Assuming you filed the return a lot later than the deadline to incur that much in the way of penalties...

What is the basis of your appeal? You'd have to have a strong argument to consider going to tribunal.

[Neilsc99]

thank you for your response

so in 2016 / 2017 i was working for a company and my basic pay was appx £35K

i took on a roll within this job where i was earning OT / call out but was not guaranteed every month.

as per HMRC they wrote to me to say i have to pay tax on the high income but i never received any notification from them about this, i did question this as they cannot prove i received these letters.

as im on PAYE and pay as i earn why should i have to tell HMRC my earnings ? surely they know what i earn and would adjust my tax code accordingly so I pay the extra tax the following year ?

i did not fill in any tax return as i was not aware i had to do this, they have advised they have registered me now for self assessment, have not got a clue what this is but i will read more into this.

When my first child was born in 2012 the bounty pack said about the benefits and what i could claim which at the time and still now by earnings are below 50K, as per HMRC i should have remembered whats in a letter going back 4 - 5 years, but who really would remember?

My point is im on PAYE so why do i need to tell the HMRC when they can clearly see my earnings.

I assume a tribunal will not cost me any money so maybe i do this just to make a point ?

[someone]

You might want to look at:

https://www.bailii.org/uk/cases/UKFTT/TC/2020/TC07740.html

Which appears to have been very recently been upheld by the UT. I guess it will go to the SC next.

https://ifamagazine.com/article/hundreds-of-thousands-of-taxpayers-to-benefit-as-hmrc-loses-landmark-case-challenging-high-income-child-benefit-charge/

[Neilsc99]

I did read about this case but I guess its slightly different to my case on the bases I did not think I would need to be involved so much when I'm paye and thought the tax office would do it for me.

Maybe this whole thing is I just don't get it and it annoys me I'm getting penilized becuase I earnt over 50k for couple years but seems joint income over 50k you don't pay tax on child benefits, does not seem fair to me but when you have people in charge making the rules whom these do not effect why should they care and they just take take take.

I assume I can set up a payment plan with Hmrc as they sent another letter today demanding the payment but they said no more will be sent as its currently being dealt with plus they asking to pay straight away, Does Hmrc understand not everyone has 2k sitting around