EM6327 | Contract Settlements: Letters of Offer: Delay in Acceptance

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

Once made, an offer which is neither withdrawn nor rejected remains open for acceptance for a reasonable period, generally up to six months.

Where an offer is not accepted within a reasonable period because of

• the need for clarification regarding the offer, or

• delay in obtaining such clarification

It is advisable to contact the customer to confirm in writing whether they still wish to proceed. This timeframe should be used as guidance, with each case assessed individually. In some instances, a new offer may be required from the customer. Where there is uncertainty, please consult your manager. If the customer fails to respond and a new offer is not forthcoming you should instead proceed formally.