EM6255 - Contract settlements: expected offer: instalments - example 3
The guidance about contract settlements at EM6000+ only relates to direct tax. You must never include VAT or VAT penalties in a contract settlement.
An offer for 拢10,000 where quarterly instalments are requested, could be expressed as follows
| 听 | 听 |
|---|---|
| 拢2,000 | Already paid on account. |
| 拢8,000 | To be paid by 16 quarterly instalments of 拢500 each, on or before the last day of each third succeeding calendar month, the first such instalment to be paid on or before the last day of the third calendar month next following that in which falls the date of the letter notifying acceptance of this offer by you. |
until the whole of the 拢10,000 has been paid.鈥�
This formula, suitably adapted, can also be used for monthly instalment cases where all the instalments are the same, and there is no initial 鈥渙dd鈥� instalment as in EM6253.