Failure to declare
Each year since its introduction in 2013 thousands of people have failed to report on their tax returns that they are liable for the high income child benefit charge (HICBC). This is largely down to the tricky rules which can make it difficult to know whether the charge applies or not (see The next step ). While HMRC acknowledges this, it is reminding all taxpayers that it will penalise for a failure to declare it.
Tip. Even if the HICBC means you get no financial advantage from claiming child benefit you should still register for it otherwise you may lose NI credits towards your state pension and other benefits.
Take special care to check if you’re liable for the high income child benefit charge and notify HMRC if you are. Failure to declare can make you liable to a penalty.