Tax Credits Act 2002 section Schedule 2 para 1

Determination of penalties by Board

Schedule 2, paragraph 1 sets out HMRC's power to determine and impose penalties for tax credit offences, and the procedures that must be followed when doing so.

• HMRC may impose penalties for incorrect statements, failure to comply with requirements, or employer payment failures, setting the amount they consider appropriate
• A formal notice must be issued to the person penalised, stating the date and explaining their right of appeal
• Once the notice has been given, the penalty determination cannot be changed except through an appeal
• The penalty becomes payable 30 days after the date on which the notice of determination is given