CCM10105 - Penalties and Interest: Incorrect Claims – No Adjustment to the Award – Enquiries or Examinations Opened on or before 5 April 2008

In some cases, although there has been an incorrect claim it will not affect the amount of the award. For example, Alana and Rick claim WTC and CTC and show their child care costs as £120 per week. Their household income is £38,014 so their WTC award is £0.00 and they receive the £545 family element of CTC. An examination establishes they are not in fact paying any child care costs but this does not affect the amount of their award. They are still entitled to the £545 family element. So even though the claim is wrong and this almost certainly amounts to neglect, there will not be a penalty as the error does not affect the award.