EM6002 - Contract Settlements: Settlement Negotiations
As you approach settlement stage, you will need to put forward
your views on the tax effect of the amendments to the
taxpayer’s self assessment. If your enquiry also covers
non-enquiry years you will need to agree the tax liability for
these years as well
(This text has been withheld because of exemptions in the
Freedom of Information Act 2000). You will need to reach agreement on the figures of tax lost
before considering the offences which have been committed over the
full period of your enquiry.
When putting figures to the taxpayer or agent you should be
careful to ensure that they are put forward on a ‘without
prejudice’ basis. Where necessary, the letter should make
clear that it is not a closure notice
EM3836.
It is at this stage that you will need to be particularly
vigilant to ensure that nothing that you do could be interpreted as
completing the enquiry. Closure notices have to be issued to the
taxpayer, so if your negotiations are with the taxpayer’s
agent or accountant there is little chance of your correspondence
being interpreted as completing the enquiry. Extra care is required
where you are corresponding directly with the taxpayer.
If the taxpayer or agent does seek to argue that letters in
which you put forward your settlement proposals have effectively
completed the enquiry you should immediately issue a disclaimer and
seek advice from
contact link.
The taxpayer should already have been made aware of
HMRC’s practice on penalty abatements and of accepting
pecuniary settlements where there has been a loss of tax and
liability to interest, surcharge and/or penalties has been
incurred. If agreement on a pecuniary settlement cannot be reached,
you may instead make assessments, or amendments to Self
Assessments, and subject to the right of appeal, take steps to
determine the appropriate
- tax and NIC
- interest
- surcharge
- penalties.
You should use form 94
EM6203 to control the settlement figures.
(This text has been withheld because of exemptions in the
Freedom of Information Act 2000)
- (This text has been withheld because of exemptions in the Freedom of Information Act 2000)
- (This text has been withheld because of exemptions in the Freedom of Information Act 2000)
