Where an incorrect claim or statement has been made fraudulently
or negligently HMRC can charge a penalty in addition to recovering
any over-claim. The maximum penalty is £3,000 per incorrect
claim or statement.
There are different opening letters for cases with and
without penalties so you need to decide whether a penalty might be
appropriate. When the case was entered on TCW an entry should have
been made for the tax credit at risk. This is the amount that might
be overpaid if we do not review the claim or award.
When deciding if a penalty might be appropriate you should
consider the following:-
Step 1
Is the amount of the tax credit at risk for the year £2,000 or more?
Step 2
Is the risk one of the following?
