Tax Credits Act 2002 Schedule 2 paragraph 3

Penalty proceedings before tribunal

Schedule 2 paragraph 3 sets out the procedure by which HMRC can bring penalty proceedings before a tribunal when a person has failed to comply with certain requirements under the tax credits system.

• HMRC may start proceedings for an initial penalty (up to £300) for failure to comply with requirements before the tribunal
• The person who is liable to pay the penalty must be made a party to the tribunal proceedings
• The "tribunal" referred to is the First-tier Tribunal or Upper Tribunal as defined in the Taxes Management Act 1970
• These provisions were amended in 2009 to reflect the transfer of tribunal functions under the modernised tribunal system