CCM16780 - Enquiries: Penalty cases: Objection to the penalty

If the claimant objects to being asked to pay a penalty you will need to carefully consider anything they say.

We can only charge a penalty where an incorrect claim or statement has been made fraudulently or negligently. If after considering what the claimant says you decide there is no penalty due you should tell the claimant that you will not be charging a penalty on this occasion. Notify the SAFE Unit, Tax Credits Team, Shipley that the overpayment no longer attracts interest and close the case on TCW - see CCOM21075.

If you are still of the opinion that there is fraud or neglect you will need to explain your reasons for this to the claimant. If the claimant continues to disagree with your opinion see CCM16680 regarding the penalty and CCM16800 if there is also an appeal against the decision to charge interest.

If the claimant objected to the penalty following receipt of the opening letter you will need to decide whether or not the award needs to be revised before you consider the penalty position. Once the award has been revised continue as shown above.