EM6003 - Contract settlements: overcoming delay

The guidance about contract settlements at EM6000+ only relates to direct tax. You must never include VAT or VAT penalties in a contract settlement.

If a customer does not make an acceptable offer within a reasonable timeframe

• you can proceed using formal powers
• consider the penalty position
• keep the customer updated whilst also setting out you are open to further discussion regarding a contract settlement

You may revert to settling the case by way of contract at any time prior to giving the relevant notice which concludes the formal compliance activity.