HMRC have issued the latest round of One-to-Many letters. It is aimed at tax agents submitting multiple P11D and P14 claims for clients where there may be a subsequent discrepancy on their 2021-22 Self Assessment Tax Return in relation to the High Income Child Benefit Charge (HICBC).

  • The nudge letters are being sent by the HMRC Agent Compliance Team throughout the month of October.
  • The P11D and P14 claims may highlight where an individual has an Adjusted Net Income of over £50,000 but no notice has been given of a liability to the HICBC.
  • The letters will be followed up by HMRC to discuss potential charges and how errors can be amended, outside of the scope of a formal enquiry.
  • The deadline for amendments to the 2021-22 tax return is 31 January 2024.
  • Any voluntary amendments entered into as a result of the letters will not attract any penalties.
  • If no amendments are made where they should have been, Discovery Assessments and Penalties may be imposed.

Useful guides on this topic

High-Income Child Benefit Charge
What is the High-Income Child Benefit Charge? Who pays it? Can you appeal against an assessment? Are there any useful cases from the tax tribunals? 

Adjusted Net Income
What is Adjusted Net Income? How do I calculate it? Why is it important? 

Discovery Assessments
When can HMRC issue an assessment outside of the normal statutory time limits? What conditions must be met? Can HMRC issue two alternative assessments for the same period? What are your rights of appeal and defences?

 


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