EM6402 - Contract Settlements: Acceptance: Authorisation levels
The guidance about contract settlements at EM6000+ only relates to direct tax. You must never include VAT or VAT penalties in a contract settlement.
When an offer has been received from the taxpayer authorisation to accept the offer must be sought at the appropriate level. For authorisation levels for
Where the offer is less than the expected offer your recommendation for acceptance or rejection must be clearly set out and the reasons why.
If the offer has to be submitted to a Local Compliance Authorising Officer (LCAO), or Lead CRM, for acceptance, your enquiry papers should accompany your AO Report Form unless you have been advised to the contrary. If payment is due on a specific date or the first instalment is due shortly your report must highlight this.
If the offer is acceptable this will be recorded on a paper copy of the form 94 or contract settlement form (CSF) by either the
- appropriate manager
- Local Compliance Authorising Officer (LCAO), or
- lead CRM.
If the offer has been accepted by a Local Compliance Authorising Officer (LCAO), or Lead CRM, they will confirm this in a covering memo and provide any advice necessary to bring the case to a conclusion, for example advice regarding any amounts to be set against the settlement.
If the offer is accepted you should
- follow the accounting procedures for SAFE
- prepare a letter of acceptance in accordance with EM6410.
The acceptance does not need to be signed by the person who formally authorised it but it must be signed by your manager if you are not an officer of at least Higher Officer grade.
It is important to remember that it is the letter of acceptance, issued on behalf of The Commissioners for Her Majesty’s Revenue and Customs that creates the contract.
