Anyone ever appeal a tax fine?

checjb

checjb

checjb

Soldato
Joined
18 Oct 2002
Posts
2,816
Location
Royston, Herts
Hi peeps,

A bit of background.
2013, I was single.
Aug 2013, I apparently received a letter from HMRC about changes to the tax system that would affect me if I earned more than £50K and had a child. Neither applied at that time. I don't even remember the letter.
End of 2013, my now wife moves in with me and brings along the girl who will become my daughter.
At that time, proto-wife informs the Benefits Agency of everything and they tell her she is entitled to child benefit - even though she tells them my salary is now more than £50K.

Last weekend, I get a letter from HRMC for £3.5K for child benefits charge payments. Now, my wife and I never even discussed this so I genuinely didn't know she was still getting them. She'd forgotten about them (she's not great with money). I duly phone up HMRC and told them what had happened and, obviously, I'd be happy to pay the money back. However, since the Benefits folks only just got round to this I'm several years behind. In addition, because I didn't know that I was supposed to be doing Self Assessment Tax Returns under the 2013 rules, I owe a fine of £500 for the child benefit and may face penalties for not completing my previous tax returns. "Oh yes sir, that's a very common mistake. A lot of people think that if you're employed and covered by PAYE then you don't need to self assess. I'm afraid that isn't correct." Black & white, simple as that. Frankly, I'm spitting feathers. Given that this is the HMRC I am assuming I might as well urinate into the wind but I thought I'd see if anyone else had any relevant experience?
 
Last edited:
I hate when I apparebntkly receive letters from HMRC. It's the worst.

Really though, I'd push it with them. I hate when companies act like people are machines and must know everything about the tax system. Otherwise it's just a free £500 for them. Your best bet really is to seek proper legal advice though.
 
Honestly, you need to get yourself a really good chartered tax accountant asap.

Secondly a good solicitor who specialises in tax law again asap.

One should link/recommend the other.

It will probably cost you £500-£1500 in fees but otherwise a) you either have no choice but to pay it as you do not want HMRC chasing you on this then try and appeal but good luck without the aforementioned and b) if you have to do self assessment, this can be backdated a long enough way and there is a good chance the account will actually net you money here.

Also feel free to ignore me and try and diy or internet advice this but the time, stress and chance of getting it wrong is almost a certainty.
 
Last edited:
Child Benefits and the High income Benefit Charge are unfortunately two separate things administered by two separate parts of government. Technically your wife is absolutely still entitled to child benefits, however, the highest paid individual has to pay it back at a sliding scale up to £60k when it will fully get repaid through the tax system. At this point it may be sensible not to get child benefit any more.

Technically the penalties are correct (although no comment about the amount as I can't remember off the top of my head), you've failed to register for self-assessment. Ignorance of the law is no defense here, and it is a point that has been tested in court and HMRC won. That doesn't mean there isn't some other good reason for the failure.

I wouldn't go see a lawyer immediately, see a specialist tax advisor and give them full details. They'll have experience with this type of thing anyway and their fees should be lower. They (should) recommend if they think it would be better handled by a specialist legal representative.
 
You're right about the CB, Pudney. My wife had a ridiculous discussion with someone from the CB agency earlier who said that she could claim the money (£20 p/w) and then pay in back at the end of the month, without penalty. When my wife asked why anyone who do this she got a vague "Well, some people find it helps them budget." Seriously?! Just bizarre.
 
It's a stupid set of rules and a stupid implementation as well. This won't make things any better but rest assured you are certainly not alone. I've seen exactly this type of thing numerous times.
 
i just had to do the same.

wife gets money for both the kids (About 140 a month) and i had to pay the full amount back as this is the first year i have been over 50k

I believe the reason they do it the way its set-up is that i protects stay at home mums and their NI contributions towards state pension.. although my wife works full time so contributes so we are stopping the child benefit.
 
No need for a lawyer. Just find a personal tax shop. This isn’t massively complex or unusual. They’ll know what to do.
 
You must log in or register to reply here.
Back
Top Bottom