Richard Chattaway v The Commissioners for HMRC
Decision date: 5 September 2023
Neutral citation: [2023] UKFTT 752 (TC)
Overall AI summary confidence: high
Short overview
This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.
AI confidence in this short overview: high
This appeal concerned HMRC assessments for the High Income Child Benefit Charge (HICBC) for 2014/15, 2018/19 and 2019/20 and Schedule 41 penalties for failure to notify. The tribunal upheld the HICBC assessments as valid and time‑barred-protected but allowed the appellant's challenge to the penalties, finding he had a reasonable excuse (ignorance that child benefit was included in adjusted net income) until HMRC's 8 March 2021 letter; the tribunal also found the appellant did not receive HMRC's 2019 "nudge" and that a 2013 SA252 did not put him on sufficient notice.
Ratio decidendi
This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.
AI confidence in this ratio decidendi summary: medium
A taxpayer who is paid under PAYE and not required to file a self-assessment may have a reasonable excuse for failing to notify HICBC liability if they were genuinely unaware that benefits (such as child benefit) are included in adjusted net income; receipt of a prior communication that does not explicitly explain that benefits count towards the adjusted net income threshold may not defeat such an ignorance‑based reasonable excuse.
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
The tribunal indicated that when HMRC relies on informal "nudge" communications to defeat an ignorance defence, HMRC should produce corroborating evidence of dispatch/receipt (for example PAYE records or other proof); the tribunal also noted it may apply general postal presumptions to informal correspondence but requires proof of sending or persuasive evidence of non‑receipt.