Isn’t this because of the dual purpose end-of-year reconciliation?
You have to send in your confirmed income details for the tax year just ended for two reasons:
– for the inital calculation of the new year’s TC award, and
– to check that you haven’t gone above the £2500 tolerance on the award for the year just ended.
The fine is payable for non-cooperation because the claimant is preventing the IR from validating the credit that has already been paid. I assume that’s the logic, rather than a draconian take-up campaign!
