In most examinations the claimant’s ability to meet the
settlement will not be a serious issue. This is because most
examinations will not include a recovery of the overpaid credits
(if any) in-year. Where you will only be recovering the penalty at
the time you close your examination, you should be aware of the
following guidance in case the claimant has serious financial
difficulties, but in most cases means will not be an issue.
Where you will be recovering overpaid credits and penalties
because the overpayment can be recovered in-year under S28(6) or an
earlier year is involved you will need to keep the claimant’s
ability to meet the settlement in mind.
