CCM10020 - Penalties and interest: penalty overview

It is the policy of HMRC to impose monetary penalties on people who, in certain circumstances, fail to meet their obligations or do things incorrectly. This fits in with an enabling and regulating policy.

Through literature, Contact Centres, Enquiry Centres and so on we help/enable people to claim the right amount of tax credits. Those who deliberately ignore our advice risk having their application looked into either as an examination or an enquiry. Where the claim is found to be incorrect due to the customer’s neglect or fraud, monetary penalties will be considered and may be imposed.

There are five situations that can lead to customer penalties. These are:-

• failure to notify change of circumstances
• incorrect notification of change of circumstances
• supplying incorrect information
• failure to supply information
• Incorrect claims

Note: From 30 June 2014 all HMRC Enquiry Centres will have closed and a new service of specialist help over the phone, supported by a mobile team of face to face advisors will be introduced. The new telephone and mobile advisory service will be available through normal helplines.