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bigduckontax, Accountant
Category: Tax
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Regarding your answer to an ealier question about whether to

Customer Question

Regarding your answer to an ealier question about whether to accept the Settlement Loan offer, you mention that if the HMRC are later found to be incorrect in their view of these arrangements then they woul dhave to pay back the amount paid under the offer. In a telephone conversation I had with the HMRC they said this wouldn't be the case, once the offer is taken up it is final for both parties, there would be no return of payments later.
Thank you
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.

Hello Marie, I'm Keith and happy to help you with your question.

Well it is true that under UK Contract Law once an offer had been made and accepted a contract exists between the two parties. One could therefore advance the argument HMRC had offered a settlement, once the other side had accepted same, then the agreement could not be reneged upon. One would have to look very carefully at the terms of the offer to ensure that there was no loophole permitting the creditor, HMRC, to change their stance. Of course, it works the other way too if it is you who have made the offer and HMRC accepted.

I do hope my answer helps to put your mind at rest. What the HMRC official told you is, on the face of it, correct, but, as I said, look very carefully at the terms in which the offer is expressed.