Alternative rights of recovery (PAYE directions): contract settlements: when should you make a contract settlement?
- The taxpayer requests a settlement and offers to pay promptly, accepting that the settlement only relates to the tax/NIC liability on their employment income and that HMRC may wish to enquire into other aspects of their SA return.
- The taxpayer agrees to pay the full liability, but needs time to pay.
- The taxpayer refuses to withdraw the appeal against the direction notice.
- There is an open Section 9A enquiry.
- An unwarranted SA repayment has been made in one or more years for which a direction has been made or is intended.