Supporting Guidance: employer compliance: guidance by subject: settlement: contract settlements - reopening post settlement
If the employer/contractor tells you that they are unable to pay the agreed settlement you will have to find out what change in their circumstances have taken place.
You should report their representations to the Contracts Settlement Unit at Cumbernauld Debt Management Office (DMO) using the following link Debt Management contact details - HMRC and inform the employer/contractor that you have done so.
If you accept that the employer/contractor is genuinely unable to pay
- ask the Contracts Settlement Unit at Cumbernauld DMO to consider a time to pay arrangement if possible.
If you consider that the employer/contractor should still be able to pay in full
- ask the Contract Settlements Unit at Cumbernauld DMO to proceed with enforcement giving any background you can.
Where exceptionally you consider it necessary to revise the original offer you should
- seek advice on the acceptability of a new arrangement and wording of any fresh offer from TAA Liverpool.
Unless the employer’s/contractor’s approach is made immediately after the acceptance of the original offer, there will be additional interest to take into account and there may have been some instalment payments made.
Your request for advice should therefore
- include your computation of the revised offer on a fresh Contract Settlement Form (CSF).
You should ask the Contract Settlements Unit at Cumbernauld DMO to suspend recovery action while the proposals are considered.
If the employer/contractor can make no proposals for settlement it is a recovery problem and the decision on how to proceed will be for the Contract Settlements Unit to make.
In no circumstances will the contract itself be renegotiated by the Contracts Settlements Unit and any time to pay arrangement will not invalidate the original contract.