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

As you approach the settlement stage, you will need to tell the taxpayer or their agent about

the tax effect of the amendments to their assessment that you are proposing for the enquiry year

the tax you believe is due for any other years that you are considering, see EM2002, and

any interest and penalties arising from these amendments.

Want to read more?

This content requires a Croner-i Tax and Accounting subscription.

Existing subscriber? Log in

No subscription?

Contact us to discuss your requirements.