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HMRC internal manual

Compliance Operational Guidance

Supporting Guidance: employer compliance: guidance by subject: settlement: contract settlement form (CSF)

The Contract Settlement Form (CSF) is available in the NPPS Penalties Toolkit on SEES. This replaces the 94EC which is discontinued and is to be prepared in all cases where there is a monetary consideration, including Employer Amendments. The form need not be completed in NIL settlement cases.

The form provides for

  • details of the liabilities underpaid
  • information on the method of recovery
  • information on how employer/contractor behaviour has been established
  • an analysis of penalty cover for all years
  • a summary of the settlement.

When completing the CSF you should

  • record the folio numbers of supporting pages
  • show years as full years, for example, 2004-05 to 2008-09
  • exclude pence from the computation (COG908030 - Example of a Computation for PAYE and NIC)
  • make reference to the relevant documents within the file that demonstrate that culpability has been established (COG905275 - Effective Questioning to establish Culpability and COG915080 - Caseworker checklist for completed cases) for the old penalty regime, and
  • behaviours for the new penalty regime (CH81110)
  • provide an explanation wherever penalties have not been pursued even though the relevant criteria have been met
  • round the amount of the expected offer to the nearest whole pound (COG914150 - The expected offer)
  • record details of any payments on account or set-offs at part 7 with fuller details on the Employer Compliance Settlement Summary (ECSS) (COG915096).

Where a penalty is appropriate the appropriate officer should

  • consider the case and the expected offer (COG914155 - The expected offer-Who makes the decisions)
  • fully document any differences or amendments.

If the case has been worked with the IT/CT caseworker and results in a joint settlement

  • do not complete Section 1. Other recovery methods should still be completed if appropriate
  • make any penalty recommendations on a separate memo to the IT/CT caseworker.