EM6417 - Contract Settlement: Post Settlement Issues - Reopening a Settlement: Procedures When Repayment Due
The guidance about contract settlements at EM6000+ only relates to direct tax. You must never include VAT or VAT penalties in a contract settlement.
If you receive a claim for repayment where the customer is challenging the amount of the settlement on the basis that we have included duties that we were legally not entitled to include, you must approach Contact Link for advice before proceeding further.
Otherwise you should
- check Case Document Store or the enquiry papers to find out whether any repayments have previously been made
- make sure that the repayment being claimed is correct in all respects because we will have no legal basis to recover any over payments at a later date
- agree the amount of the repayment with the customer
- make it clear that the proposed repayment is ex gratia
- complete the Intelligent Payment Process (IPP) form to request HMRC Payment Operations to make the repayment
When requesting a repayment, you should always check whether your request requires to be passed to an approver to be authorised. Each business area has its own business rules that determine whether a repayment needs to be authorised and at what monetary level. Where you are unsure what rules to apply to your business area, speak to your manager.
On submission of the IPP form an ID reference will be provided for you to include in case managment or system notes.
In all cases you must record details of the revised amount of the settlement and the date the repayment was authorised. This should be recorded in Caseflow or in red ink on the front of the enquiry folder.