CCM10715 – Penalties and Interest: Incorrect Claims – Establishing Which Behaviour Category Applies - Enquiries or Examinations Opened on or after 6 April 2008


In all cases where there has been an incorrect claim and you will be considering a penalty you must establish why the claimant made the error. You will then need to decide which behaviour category their action falls into – see CCM10720-10765. Once it is likely that a penalty may be charged you should explain to the claimant their rights as explained in CCM8310 for examinations and CCM14230 for enquiries.

In all cases where you consider a penalty should be imposed you must explain to the claimant(s) why you consider their actions amount to neglect and invite their comments. You can do this at a meeting or in a letter. If you deal with this at a meeting your notes must fully record what you said and their response.

If you become aware of the possibility of penalties during a telephone conversation with the claimant(s) you will need to stop the conversation and say you will be putting your thoughts in writing. See CCM8320 and CCM14240.

Where a behaviour category leads to a penalty, you must apply the guidance in the CCM in a consistent, fair but firm manner. Although you might understand why the claimant made a wrong claim this should not affect the consequences of them doing so. Your role is to explain what they have done wrong, correct this for the future and deal with the past.

You should always record the reason for your decision to charge a penalty on form 94NTC. You should also always record the reason for your decision not to charge a penalty with a note on file, as the repetition of a particular behaviour can influence the amount of a later penalty.

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

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