There are de minimis limits below which you do not need to consider if a penalty may be payable as a result of an incorrect account, information or document ( IHTM36101). The limit will depend on whether the account is incorrect as a result of
There is also a de minimis limit (
IHTM09088) under which we do not
consider penalties under IHTA84/S248 for a failing to remedy an
If an adjustment exceeds the de minimis limit it does not necessarily mean that a penalty is appropriate but in these circumstances we do need to consider whether there has been fraud ( IHTM36291) or negligence ( IHTM36301). The penalties are also subject to further risk assessment ( IHTM36144) in Compliance Group, to ensure that penalties are still worth pursuing.
If you are a band D investigator in Compliance Group and you either discover or are told that an account is incorrect and the relevant limit is exceeded, then you must refer the file ( IHTM36141) for penalties to be considered. You should not make any further enquiries about the omission or undervaluation before referring the file.
If you work in PC&S there are separate guidelines ( IHTM08119) for referrals to Compliance Group.