CCM10810 - Penalties and Interest: Incorrect Claims - Incorrect statement on S17 due to deliberate error or failure to take reasonable care.

If you are considering a penalty for Deliberate error or Failure to take reasonable care where an incorrect S17 notice has been used to finalise PY and has set the provisional award for the CY, our legislation states that we can charge a penalty for the incorrect statement for one of the years but does not specify which year attracts the penalty. In normal circumstances you will decide which year to apply the penalty to by considering the two points below

• If first year yield is greater than £3334 you can choose to calculate the penalty on PY yield applying the relevant behaviour type.
• If first year yield is less than £3334 you can choose to calculate the penalty based on CY yield applying the relevant behaviour type.

However please keep in mind that

• If you are calculating a penalty and PY is a low penalty amount you can choose to apply the penalty to CY if this produces a higher figure.

The decision to charge a penalty must be a reasonable one and you must be able to defend the decision at appeal.