ECH22055 - Settlement: Form 94(EC)

Form 94(EC) is to be prepared in all cases where there is a monetary consideration, including Employer Amendments. The form need not be completed in NIL settlement cases.

The form provides for

• details of the liabilities underpaid
• information on the method of recovery
• information on how culpability has been established
• an analysis of penalty cover for all years.
• A summary of the settlement

When completing Form 94(EC) the ECO should

• record the folio numbers of supporting pages
• only complete Section 1 where recovery is by way of a Class 6 settlement. Recoveries by other methods should be recorded at Section 6. Recovery type ‘other’ should be explained on form ECR301.
• show years as full years, for example, 2001-02 to 2003-04
• round the amount of the liability to the nearest pound ( ECH12015)
• make reference to the relevant documents within the file that demonstrate that culpability has been established ( ECH7250, ECH22040)
• provide an explanation wherever penalties have not been pursued even though the relevant criteria have been met
• round the amount of the expected offer to the nearest £50 ( ECH21115)
• record full details of any payments on account or set-offs at Section 8.

Where a penalty is appropriate the ECTM and ECUM should

• consider the case and the expected offer ( ECH21120)
• fully document any differences or amendments

When the case is settled a copy of Form 94(EC) must be attached to 94A-2-the Collectors notification of charge for the AO Network Unit.

If the review has been worked with the Small or Large Business Team and results in a joint settlement the ECO should

• not complete Section 1. Other recovery methods should still be completed if appropriate.
• not complete Section 2. Any recommendations on penalty abatements should be made on a separate memo to the SBT or LBT Enquiry Caseworker.