Contract settlements: expected offer: means - no capital and little income
The guidance about contract settlements at EM6000+ only relates to direct tax. You must never include VAT or VAT penalties in a contract settlement.
Where it is clear, see EM6214 that the taxpayer has
- no capital
- only limited earning capacity, and
- no other income of substance
and there is no prospect that they will be able to pay anything more, even by instalments, see EM6249+, you should
- settle for the enquiry year’s liability only
- close the enquiry by formal means, and
- give Debt Management and Banking all the information you have about the taxpayer’s income, outgoings, assets and liabilities, including a copy of SEES form MS134 with your report.
EM1020 tells you how to contact DMB.