This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

Technical Teams Operational Guidance

Settling the enquiry: general: settling in different ways

The form of settlement where agreement is possible varies considerably.

Cases working under Code 9 will usually conclude (if they are not ‘nil’ settlements or cases determined by formal procedures) by the taxpayer making an offer to pay agreed additional liabilities together with interest and a negotiated penalty, in consideration of civil proceedings not being taken.

Some Code 8 cases will also conclude on this basis. Others will conclude by an agreement that an amount will be paid in consideration of the discharge of defined assessments, or for assessments not being raised on a source in a particular year.

There are other cases, of all types, where individual offers and agreements have to be drawn up to fit the demands of the case. SIOG9300 deals with offers in settlement.