HMRC has now repayed £1.8 million in tax penalties to nearly 5,000 parents who were fined for failing to register for the High Income Child Benefit Charge.
The High Income Child Benefit Charge is payable by a taxpayer who has 'adjusted net income' in excess of £50,000 where either they or their partner, if they have one, are in receipt of Child Benefit.
HMRC reviewed 35,000 cases where fines had been issued, and wiped fines for 6,000 taxpayers who had a ‘reasonable excuse’ for failing to notify liability to the charge.
Commenting on the issue, Becky O’Connor, Personal Finance Specialist at insurers Royal London, said: ‘The bulk refund of penalty charges is an unprecedented move by HMRC and was the right thing to do. It is also an attempt to draw a line under complaints. However, there are many more law-abiding parents who did not realise that they should have paid the charge and who have not had a refund.
‘The way the charge was introduced was unfair and confusing, and these refunds do not go far enough.’