When the child benefit regime was changed, from 2012 those earning over £50,000 who got child benefit, or whose partner claimed child benefit, were required to register for HICBC.

The rules also applied to higher earners in families where someone else got child benefit for a child living with them and contributed at least an equal amount towards the child’s upkeep.

After registering, individuals could either opt out of getting child benefit or pay the charge. Failure to do so attracted a penalty, typically of £100.

Now HMRC has said it is reviewing cases where a failure to notify penalty was issued for the tax years 2013/14, 2014/15, and 2015/16, to taxpayers who did not register for HICBC.

The department will review cases for these years and issue penalty refunds if it finds the taxpayer had a reasonable excuse for not meeting their tax obligation.

While normally individuals have to explain why they have a reasonable excuse, in this instance following feedback HMRC is proactively reviewing these cases.

This will include families who made a claim for child benefit before the charge was introduced, and where one partner’s income subsequently increased to over £50,000 in or after the 2013 to 2014 tax year. This is because the higher earner in a household who pays the charge may not be the same person claiming child benefit on behalf of the household.

The review will not include anyone who received communications from HMRC about HICBC or claimed child benefit after the charge was introduced in 2012/13.

Alongside this, HMRC is already writing to taxpayers who might be liable to the charge in 2016/17 and 2017/18, to help them meet their tax obligations in time to avoid paying a penalty.

An HMRC spokesperson said: ‘HMRC is listening to customers and stakeholders, and reviewing our approach to HICBC to ensure we are treating everyone fairly.

‘Customers do not need to ask for a penalty refund or contact HMRC. We will issue the refunds, where due, over the next six months.’

Report by Pat Sweet