CCM16620 - Enquiries: Penalty cases: Settlement proposals
Where after 30 days there is no appeal to the revised decision notice you will be in a position to let the claimant have details of your settlement proposal.
Your first step is to decide who should be asked to meet the settlement - see CCM14215.
Once you have decided who will meet the settlement you should calculate the amount of the proposed penalty. CCM Chapter 10 contains detailed guidance on how to calculate the penalty. Once you have calculated the amount, you should show this amount on a form 94 NTC.
Where the claim is made by a couple and you are inviting one joint letter of offer you should show both of their names on the form 94 NTC. If the offer is from a single claimant or only one member of a couple is making the offer, the form 94 NTC will show the name of the person making that particular offer. Where you are inviting separate letters of offer from the ex members of a couple you will need to prepare two separate forms 94 NTC.
If there is a continuing award the overpayment will be recovered from future payments so there is no need to show the overpayment or interest on the 94NTC.
Where there is no continuing award you will also include the amount of the overpayment and the interest on the form 94NTC. For guidance on how to calculate the interest charge see CCM Chapter 10.
Once you have completed the form 94NTC your proposed penalty figure must be submitted to your Claimant Compliance Manager for approval.
Once your proposed figure has been approved you should prepare a draft letter of offer - see CCM8740 and CCM8810. Then write to the person who will be paying the penalty using the standard letter template TCC52 which explains:-
- Why you consider they should pay a penalty.
- How we prefer to settle cases involving penalties.
- The minimum amount of penalty we expect them to pay.
- Where there is no continuing award the letter will also refer to the overpayment and interest that will be included in the letter of offer.
- Your proposal is based on payment within 30 days, but if they are not able to repay the money in the suggested period they should get in touch with you immediately to discuss alternative arrangements see- CCM14300.
- If you do not hear from them within 21 days (or a longer period if you feel that is reasonable) you will have no alternative but to assume they are unwilling to make such an offer. Formal proceedings will then begin to recover the penalty.
Once you have issued this letter BF your papers for 30 days. If the letter of offer is returned - see CCM16630.
If the claimant objects to you charging a penalty - see CCM16780.
If the claimant appeals or objects to you charging interest - see CCM16800.
If there is no reply you should make three attempts to telephone the claimant to discuss the settlement. If you cannot contact them or the telephone call does not result in the letter of offer see CCM16680.
