EM6335 - Contract Settlements: Letters of Offer: Detail - General

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

The letter of offer is intended to form the basis for a legally binding contract with terms which cannot subsequently be disputed.

It should not contain any

• unacceptable terms such as

• ‘I reserve the right to re-open this offer if I can find evidence of my gambling wins’

• uncertain terms such as

• ‘I shall pay the sum of £x as soon as I can’

• conditional terms such as

• ‘if I can sell my house for £x’.