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HMRC internal manual

Compliance Operational Guidance

Supporting Guidance: employer compliance: guidance by subject: penalties: the expected offer - who makes the decisions?

When you have

  • established the inaccuracies,
  • calculated the tax/NIC due
  • agreed the liability with the employer/contractor
  • calculated the interest
  • identified the culpable tax/NIC - COG915040, and
  • ascertained and recorded all factors relevant to the penalty abatements and/or quality of disclosure

you must

  • make a submission to the appropriate officer seeking approval of the expected offer - COG914150 to be sought from the employer.

Note: Where the appropriate officer is based remotely from the team, arrangements must be made to make sure this process is correctly followed.

The appropriate officer should

  • review the papers
  • make sure mandatory interest has been included
  • review the decision on culpability
  • confirm that the employers rights under Article 6 of ECHR have not been infringed - COG906050 
  • review the recommendations on abatements and/or quality of disclosure
  • agree the expected offer or resolve any differences
  • approve the settlement on the Contract Settlement Form (CSF).