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HMRC internal manual

Claimant Compliance Manual

From
HM Revenue & Customs
Updated
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Penalties and interest: a penalty followed by a change of circumstances or income

Where we charge a penalty as a result of a successful Section 15 or 16 in-year examination or a failure to notify a change of circumstance, the customer or customers circumstances or income might change later in the year. This does not require an amendment to the penalty. The penalty has been charged because of the previous offence and will reflect the relevant factors at that time.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

In February 2010 Mandy gets in touch because her overtime has stopped at the end of November and her income has therefore gone down. The reduced income means she is now entitled to tax credits of £57 per week from 1 May which is more than she was receiving before your examination. There will be no reduction to the penalty. This was charged because Mandy had failed to notify a notifiable change of circumstances within the time limit and at that point the tax credit difference was at least £20 per week.