9. The settlement figure is often NOT what it appears to be

After months and sometimes even years of negotiation HMRC will present you with a settlement figure. The impulse for the tax payer will be to sign and bring the ordeal to an end.

This figure – unfortunately – is not what it appears to be, it’s the tip of an iceberg: if you agree to it you will find yourself slipping into some very icy water.

HMRC will take (or “scale”) that figure back over (at least) five years (making the assumption that what you have done in one year you have done in others) they will then add penalties and interest.

In short you will end up being given a final bill which is much bigger than you anticipated.