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HMRC internal manual

Enquiry Manual

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 must be authorised by either your Manager or another Authorising Officer.

In addition a nominated Evasion Grade 6 must authorise offers over £500,000. 

Authorisation - settlements over £500,000

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.

Your submission to them must

  • include a report of the facts of the case on the AO Report Form (available on SEES ‘forms and letters’) and the Contract Settlement Form (CSF) (available on SEES - NPPS penalties toolkit)
  • SEES template FRB1, and
  • the report must be countersigned by your line manager.