TFC60800 | Penalties: penalties for dishonestly obtaining top-up payments

Childcare Payments Act 2014, section 46

HMRC may impose a penalty on people whose conduct involves dishonesty. HMRC has the power to impose a civil penalty in cases where a criminal prosecution is not pursued.

Childcare Payments Act 2014, section 46(1)

A person is liable to a penalty if, in order to obtain a top-up payment or a payment from a childcare account for themselves or another person, they act or fail to act, and their conduct involves dishonesty.

Maximum amount of penalty for dishonestly obtaining top-up payments

Childcare Payments Act 2014, section 46(3)

The maximum amount of a penalty issued as a result of dishonesty may not exceed £3,000, or the sum of the ‘relevant amounts’ that have been obtained, whichever is greater.

Childcare Payments Act 2014, section 46(4)

A ‘relevant amount’ is either the amount of the top-up payment, or an amount equal to the top-up element calculated under section 21 of the Act (see TFC35300) of any payments that are dishonestly made from a childcare account.