A6.943 Settlement

The most common method of settlement is a contract settlement (referred to as a Class 6 settlement). A contract settlement is appropriate where both parties are able to agree a settlement figure (to include duties lost, plus interest and a penalty), and HMRC will ask the employer to sign a letter of offer. If the letter of offer is acceptable to HMRC it will confirm its agreement to the employer. Once the contract is made, interest will be charged on the total liability (ie duties, interest and penalty) if payment is made late1.

In the event that the parties

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