Contract settlements: acceptance: authorisation levels - WMBC Mid-Sized Businesses
The guidance about contract settlements at EM6000+ only relates to direct tax. You must never include VAT or VAT penalties in a contract settlement.
All letters of offer and acceptance of the offer must be authorised by either your Manager or another Authorising Officer.
You must always ensure that a full audit trail of contract authorisations for both the offer and acceptance is recorded digitally, for example in Caseflow, and within any paper file.
Offers of £500,000 or more must be authorised by following the guidance in the table below.
Authorisation - settlements of £500,000 or more
|MSB work area||Authorisation limits|
|(total value of offer)||Authorised by|
|MSB Complex Evasion Programme (CEP) team: CEP Direct Taxes (CT/IT) and CEP Employer Duties||Up to £1m||MSB Evasion G6|
|MSB Complex Evasion Programme (CEP) team: CEP Direct Taxes (CT/IT) and CEP Employer Duties||Over £1m||a second MSB Evasion G6|
|MSB Direct Taxes team (not CEP)||Over £1m||MSB Evasion G6|
|MSB Employer Duties team (not CEP)|
|1) The total liabilities amount to £500,000 or more|
2) The ‘voluntary’ grossed up settle amounts to £500,00 or more
3) The combined totals of both of the above which amount to £500,000 or more
4) A penalty only offer where the underlying duties amount to £500,000 or more
5) An instalment arrangement will exceed 3 years
|6) The offer differs from the expected amount to the extent that it cannot be accepted locally||For all of 1) to 6) - MSB ED Grade 7 approval through mailbox|
For details about who to contact for this higher level of authorisation, see the Complex Evasion Programme (CEP) webpage for a list of MSB Evasions Grade 6’s.