Contract Settlements: Letters of Offer: Checklist
The guidance about contract settlements at EM6000+ only relates to direct tax. You must never include VAT or VAT penalties in a contract settlement.
- pay particular attention to the points below when checking the draft of the letter of offer, and
- refer to EM6252 where instalments are necessary.
|a||Does the letter make sense?|
|Does it set out in clear and unambiguous words the terms which have been agreed, or which you expect to be agreed at the settlement interview?||EM6335|
|b||Does it set out the consideration for the payment to be made by the taxpayer?||EM6336|
|c||Does it set out all the duties (and any NIC) taken into account in framing the offer?||EM6337|
|d||Does it contain a reference to the taxpayer’s failure or default?||EM6338|
|e||Does it mention interest and/or penalties and/or surcharge?||EM6339|
|f||Does it set out the gross amount of the offer before any deductions?|
Does it show separately, and in precise terms, any deduction?
|Does it show any balance still to be paid?||EM6340|
|g||Does it say precisely when payment is to be made?||EM6341|
|h||Does it specifically exclude any duties or NIC which will not be included in the settlement?||EM6342+|
|i||Is it suitably worded for signature by the person(s) intended to sign it?||EM6350|
|j||Does it include the standard interest clause?||EM6351|