Beta This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

Compliance Operational Guidance

Supporting Guidance: employer compliance: guidance by subject: penalties: the expected offer

Once you have agreed the duties, NIC and interest, and calculated the amount of the penalty, you must arrive at the expected offer by adding these figures together and rounding the total of all these down to the nearest whole pound.

You must no longer invite offers that are rounded to the nearest £50. If you receive an uninvited offer that has been rounded down in this way, it should be treated as a substandard offer, see EM6210.

Any rounding must not take the effective penalty above the statutory maximum cover.

You should then complete the Contract Settlement Form (CSF). An additional report will be required in cases which need to be submitted to the Authorising Officer - see COG914570 - acceptance.

The expected offer should be agreed and approved by the appropriate officer before the settlement meeting/discussion is held - see COG914155.

The ‘Accepted by’ box on the CSF will be completed by the appropriate officer at the settlement stage.