CCM10700 – Penalties and Interest: Identifying Incorrect Claims Enquiries or Examinations Opened on or after 6 April 2008

The guidance on penalties in CCM10700-10800 applies only to new enquiries or examinations opened on or after 6 April 2008. It does not apply to enquiries or examinations opened on or before 5 April 2008 even if they are closed after that date - for those cases, see CCM10020- 10120.

You are likely to encounter penalties for incorrect claims in the following situations:-

• an incorrect claim is made and this is picked up during a Section 14, 15 or 16 in-year examination
• an incorrect Section 17 end of year declaration is made and this is picked up during a Section 19 end of year enquiry.

In each situation the maximum penalty provided by the legislation is £3,000 but in reality most penalties will be set at a lesser amount. The amount of the penalty will depend on:

• the behaviour which led to the incorrect claim – see CCM10710-10770
• whether the person voluntarily discloses details of the error prior to the opening of an enquiry or examination – see CCM10780
• (This text has been withheld because of exemptions in the Freedom of Information Act 2000)
• whether the examination is opened pre-award – see CCM10795.

Where an incorrect S17 notice has been used to finalise the previous year and has set the provisional award for the current year there is only one penalty - see CCM10040.

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