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HMRC internal manual

Compliance Operational Guidance

Supporting Guidance: employer compliance: guidance by subject: letter of offer: acceptance - Mid-sized Business (MSB)

Authorisation - settlements over £500,000

The following offers must be authorised by an Employer Duties Grade 7:

  • The total liabilities amount to £500,000 or more
  • The ‘voluntary’ grossed up settlement amounts to £500,000 or more
  • The combined totals of both of the above amount to £500,000 or more
  • A penalty only offer where the underlying duties amount to £500,000 or more
  • An instalment arrangement will exceed three years
  • The offer differs from the expected amount to the extent that it cannot be accepted locally.

If you have an offer that requires authorisation, please forward this to the following  mailbox - [### Authorisation - settlements over £500,000

The following offers must be authorised by an Employer Duties Grade 7:

  • The total liabilities amount to £500,000 or more
  • The ‘voluntary’ grossed up settlement amounts to £500,000 or more
  • The combined totals of both of the above amount to £500,000 or more
  • A penalty only offer where the underlying duties amount to £500,000 or more
  • An instalment arrangement will exceed three years
  • The offer differs from the expected amount to the extent that it cannot be accepted locally.

If you have an offer that requires authorisation, please forward this to the following  mailbox -](mailto:7892783)  - include ‘Offer Authorisation’ in the subject box.

The submission to the mailbox must include

  • a report of the facts of the case on the AO Report Form - available on SEES ‘forms and letters’ 
  • the Contract Settlement Form (CSF) -available on SEES - NPPS penalties toolkit
  • SEES template FRB1.

The report must be countersigned by the caseworker’s line manager.

Authorisation – settlements over £1 Million

Managers were required to have such cases independently reviewed by an Employer Duties Grade 6 Technical Lead before the case is settled on Caseflow.  The independent reviewers (This content has been withheld because of exemptions in the Freedom of Information Act 2000) were then required to complete a stencil to send to the strategic lead, the quality team and the Manager - the caseworker must then save a copy of that final stencil to Caseflow.

Going forward, the G7 responsible for authorisation of these settlements will also discuss any in excess of £1 million(This content has been withheld because of exemptions in the Freedom of Information Act 2000) to allow them to complete the final sign off.  ALL authorisations over £500,000 must now go directly to the mailbox above.