Tax Credits Act 2002 Schedule 2 paragraph 2

Appeals against penalty determinations

Schedule 2 paragraph 2 sets out the powers of the First-tier Tribunal and the Upper Tribunal when hearing appeals against penalty determinations made under the Tax Credits Act 2002.

• When a penalty determination is appealed to the First-tier Tribunal, it can set aside, confirm, reduce or increase the penalty as it sees fit, up to the permitted maximum
• The tribunal may reduce the penalty to nil if the determined amount appears excessive, or increase it if the amount appears insufficient
• The person liable to the penalty has a further right of appeal to the Upper Tribunal specifically against the amount of the penalty determined by the First-tier Tribunal
• The Upper Tribunal has the same powers as the First-tier Tribunal when hearing such an appeal, including the ability to set aside, confirm, reduce or increase the penalty