EM6410 - Contract Settlements: Acceptance - Letter of acceptance

The guidance about contract settlements at EM6000+ only relates to direct tax. You must never include VAT or VAT penalties in a contract settlement.

You can issue a letter accepting an offer if

• the offer is satisfactory in every respect, see EM6401, and
• this has been authorised by an officer of the correct level signing the form 94, see EM6402.

You should prepare the acceptance letter as soon as possible after acceptance of the offer has been authorised. An officer of at least Higher Officer grade must sign the letter. This does not have to be the person who formally accepted the offer by signing form 94, see EM6402.

You must treat any payment received with the letter of offer as a payment on account, see EM1935+.

The wording of the letter of acceptance will depend on the payment basis set out in the offer.

• Use this link if you are accepting a single payment offer.

Use this link if you are accepting an instalment offer.