Stage Three - Settlement By Agreement (Info)

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An appeal may be settled by agreement.

Settlement by agreement is where the claimant and the Tax Credit Office (TCO) reach an agreement about the terms of the final decision. For tax credits, settlement will be considered whenever the claimant appeals against a decision. If there is

• A full settlement, the appeal will effectively close

• No settlement, and it will not always be possible to reach agreement, the appeal will continue to the tribunal

This process is started where the issues raised by the claimant in the letter of appeal are discussed, preferably over the telephone

If there is merit in what the claimant is saying, then you can amend the decision accordingly and the appeal is settled by agreement

Alternatively, there may be no merit in what the claimant is saying. However once the decision, or the operation of the legislation behind the decision, or some other aspect has been explained, the claimant may agree that the appeal is not appropriate after all.

To effect a settlement by agreement there must be an agreement on the issues between HM Revenue & Customs (HMRC) and the claimant.

A settlement cannot be imposed or assumed because HMRC are able to change the decision or any element of it in favour of the claimant.

The appeal can be settled by agreement in total or in part.