CCM10720 – Penalties and Interest: Incorrect Claims – Meaning of Mistake or Misunderstanding - Enquiries or Examinations Opened on or after 6 April 2008

We will not charge a penalty where an over-claim arose from an error which was the result of a mistake or misunderstanding.

These types of cases will be rare and will only include over-claims where, for example:

• the error concerns a difficult aspect of the system, or;
• the claimant’s individual circumstances – for example illiteracy, innumeracy, physical or mental disability, etc – mean that the error was understandable.

Note: Even in these circumstances we expect claimants to have sought the support they need to make a reasonable attempt to comply with their obligations – such as reading the guidance notes or phoning HMRC’s helpline. If they have not then you should firstly consider whether the behaviour amounts to a Failure to Take Reasonable Care - seeCCM10730.

See CCM10725 for examples of what is considered a Mistake or Misunderstanding.