CCM9140 - Cashcheque offences: Penalties and cashcheque offences

Where someone incorrectly receives monies as a result of a cashcheque offence we can impose a monetary penalty under S31(1) Tax Credits Act 2002. S31(1) says:

Where a person fraudulently or negligently-

(a) makes an incorrect statement or declaration in or in connection with a claim for a tax credit or a notification of a change of circumstances given in accordance with regulations under section 6 or in response to a notice under section 17…..
a penalty not exceeding £3000 may be imposed on him.

Where someone completes a TC241 - see CCM9060- knowing it to be a false statement we can charge a penalty.

Where at the time of signing the TC241 the claimant genuinely believes the cashcheque is missing they have not made a negligent declaration.

Where the claimant did not make a negligent or fraudulent declaration when they signed the TC241 we can still charge a penalty where, when they signed the cashcheque they know or could reasonably have been expected to know that they were not entitled to the duplicate payment.

The maximum penalty is £3000 in respect of each incorrect statement, so if a person repeatedly commits cashcheque offences, a penalty of up to £3000 can be imposed in respect of each offence.

(This text has been withheld because of exemptions in the Freedom of Information Act 2000)

(This text has been withheld because of exemptions in the Freedom of Information Act 2000)