ECH22081 - Contract Settlements: The Strategic Accounting Framework Environment: SAFE - Re-opening a Contract Settlement
It could be argued that where an employer has entered into a
legal contract which is binding, any adjustment to the underlying
figures should be precluded. To adhere strictly to this line of
argument would place a co-operative employer at a disadvantage,
since an uncooperative employer against whom formal steps had to be
taken at every stage would still have open to him all of the
relieving provisions of the Taxes Acts.
The Board will be prepared to re-open a settlement to the
extent necessary to allow an employer the benefit of any adjustment
which could have been claimed if the liability had been dealt with
by assessment/determination.
The circumstances in which the Board will consider re-opening
a settlement are explained at EM9025.
If it is considered appropriate to re-open a settlement the
caseworker should discuss the case with the Manager. If the Manager
agrees to re-open the settlement the caseworker should
- recalculate the expected offer
- obtain written agreement to the amount of the reduction from the employer
- obtain signed confirmation of the amounts paid against the settlement, including interest.
If the reduction in the settlement results in a repayment becoming due the caseworker should
- follow the guidance at EM9037
- arrange for the issue of a note to the SAFE nominee to reduce or cancel the charge ( ECH22082, ECH22085)
If a balance is still due and payable following the reduction in settlement the caseworker should
- arrange for the balance to be paid by the employer
If there is still a balance which is not immediately due and payable (for example on an instalment offer) the caseworker should
