Contract settlements: expected offer: means - some 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.
If it is clear, see EM6214 that the taxpayer has
- a certain amount of capital but
- insufficient income to make a standard instalment offer, see EM6249+,
- establish what is the best cash or instalment offer the taxpayer can afford, and
- tailor the offer to fit this by limiting the years covered by the enquiry.
If they are not prepared to make an acceptable offer, you should without any prolonged delay
- settle the case by the formal route
- give Debt Management and Banking all the information you have about the taxpayers income, outgoings, assets and liabilities, using SEES form MS134, and
- explain the situation to the tax payer and agent accordingly.
EM1020 tells you how to contact DMB.