Many examinations will result in a penalty only letter of offer
because either the overpaid credits are not recoverable in-year or
the over-payment will only be finalised at the end of the tax year.
You should use the appropriate template provided at
CCM8740 to
CCM8810 (Appendices), but you will also
have to show the nature of the offence in the statement of
penalties.
For each offence leading to a penalty you will need to show
the tax year to which the award of tax credits relates or did
relate. For each penalty you will then need to describe the nature
of the offence and you should choose your description from the
following:
* Delete as appropriate.
For penalties under Section 31(1)(a) and (b) you must show
either fraud or neglect, but not both. In almost all cases worked
in the Claimant Compliance Centres you will be saying they have
behaved negligently.
(This text has been withheld because of exemptions in the
Freedom of Information Act 2000)
For penalties under Section 32(3) you should show the date on
which the change of circumstances occurred so that there is no
doubt about the change to which this relates. Wherever possible you
should show the precise date but on some occasions you might only
have established the month of the change in which case you should
show “in” followed by the month of the change.
Where your letter of offer covers more than one penalty you
should list each one separately in the statement of penalties.
