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HMRC internal manual

Enquiry Manual

From
HM Revenue & Customs
Updated
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Contract settlements: expected offer: departure from

The guidance about contract settlements at EM6000+ only relates to direct tax. You must never include VAT or VAT penalties in a contract settlement.

Once you have calculated the expected offer, you should not normally depart from it unless

  • you have real doubts about the strength of your case, or
  • further evidence, or further argument, makes you change your mind, or
  • there is a means problem which cannot be resolved by allowing time to pay EM6235.

Normally you will have had warning of these potential difficulties and will have obtained prior approval for alternative acceptable offers. If you have doubts about the strength of your case seek advice from contact link.

In some circumstances an offer that is marginally less than what was expected may be accepted(This content has been withheld because of exemptions in the Freedom of Information Act 2000) (This content has been withheld because of exemptions in the Freedom of Information Act 2000)