A new client came to me with a tale of woe last Christmas, having received an assessment for HICBC covering the five years 2012/17.
We've now agreed the HICBC due (in two years he earned between £50k and £60k) but I would appreciate thoughts on the following.
1. Apart from the HICBC, he has overpaid tax, mainly on his private pension (he didn't realise he could claim higher rate relief <sigh>). However, interest and penalties have been calculated on the HICBC due, not the actual underpayment of tax).
2. He's been charged a 20% penalty for not having a reasonable excuse. I was looking at James Robertson v HMRC 2017[TC6410] which the taxpayer won on the grounds that HMRC could not make a discovery as HICBC is not income and no notice to file was given by HMRC. Has anyone had any success with this case ? Apart from James Robertson, obviously.
Is this worth pursuing or would I be wasting my time ?
HICBC repayable is £3991, interest £399, penalties £798 - as charged by HMRC and disputed in part.