EM6254 - Contract settlements: expected offer: instalments - example 2

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

An offer of £8,900 with varying instalments might be expressed as follows

£1,000	Already paid on account
£500	To be recovered from a repayment of Income Tax, with supplement, due to me,
£2,000	To be paid within 30 days of the date of the letter notifying acceptance of this offer by you,
£2,400	To be paid by 12 monthly instalments of £200 each, on or before the last day of each succeeding month, the first such instalment to be paid on or before the last day of the month next following that in which the instalment of £2,000 becomes due
£3,000	To be paid by 12 monthly instalments of £250 each, on or before the last day of each succeeding month, the first such instalment to be paid on or before the last day of the month next following that in which the twelfth instalment of £200 becomes due,

until the whole of the £8,900 has been paid.’