Where an incorrect claim or statement has been made fraudulently
or negligently HMRC can charge a penalty in addition to recovering
any overpayment. 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 – see
CCM17215.
The calculation of the penalty and contact with the claimant
regarding the payment of the penalty must be handled by a Band O or
above.
