Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what the process is for people to repay outstanding high income child benefit charge amounts; and over what period of time that facility is made available to those people.

The High Income Child Benefit Charge (HICBC) was introduced in January 2013. HM Revenue and Customs (HMRC) took considerable steps to raise awareness and ran extensive communications campaigns when the tax charge was introduced. This included writing to around 800,000 families affected by the charge when it was launched. HMRC also ran a high profile advertising and media campaign over summer 2013 to prompt those who did not stop their payments to register for Self-Assessment in order to declare and pay the charge.

HMRC continues to make information on the HICBC widely available, and include it in the packs for new parents telling them how to claim Child Benefit. HMRC also give guidance online on Gov.uk.

Individuals who are not in Self-Assessment and are liable for the charge should tell HMRC they are chargeable within 6 months of the end of the tax year. If they do not notify HMRC within 6 months, they should contact HMRC at the earliest opportunity. A penalty may be charged where someone fails to notify HMRC on time. For those who do not, HMRC uses existing compliance processes and penalties.

The rules on interest charged for late payment of the HICBC are the same as those applied to other taxes and duties. Interest is charged from the due and payable date of the tax.

HMRC charges interest on penalties for failure to notify liability to tax which are being appealed against. HMRC charges interest where the penalty is paid late and will pay interest to the individual if the penalty is reduced or withdrawn.

HMRC Call Centre staff have been provided with guidance on HICBC since HICBC was introduced. All call centre guidance is reviewed and updated regularly.

HMRC do not have data on the number of taxpayers who have failed to tell HMRC about their liability for HICBC, or the total number who have been required to register for SA each year since the charge was introduced.