Enquiries: Penalty cases: Adjustment needed to the award and the year following the enquiry is not the current year
Before taking any action to adjust the award you must consider whether any adjustments are needed for other years.
- If an earlier year also needs to be adjusted see CCM14205. However, you must not go back to PY-1 or earlier years without agreed and documented approval from your manager.
- Later years - In most situations the outcome of your enquiry will have an impact on the later year. If this is no longer the current year (for example your enquiry is for 2007/2008 and it is now August 2009) how you proceed depends on whether the award has been finalised.
- Award finalised - you will need to open an enquiry before you take any further action regarding the existing enquiry. You should issue the letter at CCM14106.
- Award not finalised - you will need to inhibit finalisation and ask the claimant to return their S17 notice to you. Once this has been returned you can make the amendment under S19 for the enquiry year and finalise the later year by making a S18 decision. If there is a continuing claim you will also have to make the S14 decision for the current year using ‘finalise and renew’. If there is no continuing claim you will use ‘finalise only’. If the claimant fails to return the S17 notice, you will have to wait until the first specified date (see CCM11040) before making your amendments using ‘finalise only’. If the enquiry window for later years has closed you must consult your manager.
After issuing the letters in CCM14106, BF your papers for 7 days and then continue as shown below.
You must write to the claimant(s) to let them know about your decision. You should always write to them even if you have spoken to them and explained to them the position on the phone.
You will then calculate the penalty. CCM chapter 10 gives detailed guidance on how to calculate the penalty. Once you have calculated the amount you should show the amount of the penalty on form 94NTC
You must use the standard letter template TCC94. The letter explains your conclusion and they will soon receive a formal decision notice. It also explains we will be charging a penalty.
Where the claim has been made by a couple in a joint household, only one letter should be sent addressed to both claimants. When sending out joint letters the claimants must still be part of a couple and residing at the same address. If they are part of a couple but residing at different addresses or no longer part of a couple, then a separate letter must still be sent to each claimant.
If the claimant has authorised an agent to act for them remember to send a copy of the letter to the agent.
You should then take the necessary system action to amend the award - see CCM16590.