EM6402b - Contract Settlements: Acceptance: Authorisation Levels - National Teams - High Net Worth Unit (HNWU)
The guidance about contract settlements at EM6000+ only relates to direct tax. You must never include VAT or VAT penalties in a contract settlement.
A team manager of Higher Office grade, or a person with the appropriate training who has been delegated to act in the capacity of Authorising Officer, must authorise
- Standard cash offers up to £25,000 that do not include a penalty
A team manager of Senior Officer grade, or a person with the appropriate training who has been delegated to act in the capacity of Authorising Officer, must authorise
- standard cash offers up to £25,000 that include a penalty
- standard cash offers between £25,001 and £50,000
- instalment offers that do not extend beyond 2 years
may be accepted by managers of Senior Officer grade
A grade 6 or 7 lead CRM must authorise
- standard cash offers between £50,001 and £350,000
- instalment offers that run for between 2-3 years
When submitting the case to the Lead CRM, you must submit it with a Settlement Report Template. Your line manager must countersign the Settlement Report Template to say they have checked and agreed it.
If you are a Lead CRM and are personally working a case, the Head of Business Delivery must authorise acceptance of offers.
An Authorising Officer in the HNWU Senior Management Team must authorise
- standard cash offers of £350,000 and above
- instalments offers that exceed 3 years
- all sub-standard offers that exceed the tolerances set out at EM6211
When submitting the case, you must submit it with a Settlement Report Template. The Lead CRM must countersign the Settlement Report Template to say that they have checked and agreed it.
None of the above limits distinguish between
- culpable and non-culpable tax/NIC
- full and aspect enquiries
The limits apply to the total settlement, including all duties, interest and penalties.
