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HMRC internal manual

Claimant Compliance Manual

From
HM Revenue & Customs
Updated
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Enquiries: Penalty cases: Penalty following appeal

Once you have settled your appeal against the revised decision you will need to consider any penalty.

If the claimant has provided some new information you must decide if a penalty is due based on the adjusted details - see CCM16230.

  • If a penalty is no longer appropriate - notify the SAFE Unit, Tax Credits Team, Shipley that the overpayment no longer attracts interest and close the case on TCW.
  • If a penalty may still be appropriate - see below.

If a penalty may still be appropriate you will need to consider the type of discrepancy and the claimant’s behaviour which led to the incorrect claim - see CCM10710. In deciding the category of the penalty you will need to take into account any explanation the claimant has given regarding the error. If you do not have enough information to decide on the category or cannot be certain there is at least neglect, you will need to contact the claimant to discuss why they made the error in their claim.

If you decide there is no fraud or neglect there will be no penalty. Notify the SAFE Unit, Tax Credits Team, Shipley that the penalty no longer attracts interest and close the case on TCW.

If you still decide to charge a penalty you must write to the claimant(s) to explain.