EM6335 - Contract Settlements: Letters of Offer: Detail - General
The guidance about contract settlements at EM6000+ only relates to direct tax. You must never include VAT or VAT penalties in a contract settlement.
The letter of offer is intended to form the basis for a legally binding contract with terms which cannot subsequently be disputed.
It should not contain any
- unacceptable terms such as
- ‘I reserve the right to re-open this offer if I can find evidence of my gambling wins’
- uncertain terms such as
- ‘I shall pay the sum of £x as soon as I can’
- conditional terms such as
- ‘if I can sell my house for £x’.