CCM17700 - Discrepancy Examinations: 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 pay the penalty – see CCM8240 – CCM8290. Once you have decided who will pay the penalty 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. In most discrepancy examinations there will be no overpayment and so no interest. If exceptionally there is an overpayment to recover follow the guidance in CCM Chapter 8. Once you have completed the form 94NTC your proposed penalty figure must be submitted to your Claimant Compliance Group Manager for approval.

Once your proposed figure has been approved you should prepare a draft letter of offer – see CCM8750 and CCM8790. Then write to the person who will be paying the penalty using the standard letter template TCC52 which explains:-

1. Why you consider they should pay a penalty.
   
   
2. How we prefer to settle cases involving penalties.
   
   
3. The minimum amount of penalty we expect them to pay.
   
   
4. 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- CCM8510.
   
   
5. 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 CCM17710.

If the claimant objects to you charging a penalty – see CCM17780.

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 CCM17740.