Whilst I'm sure that the commentary above is accurate and represents real situations, I feel that I must add some caution to proceedings.
First, HMRC is UNABLE to reduce or mitigate interest that has arisen on unpaid tax. If you have agreed that the tax is due and it is paid late, then interest arises and HMRC has no power to put aside the legal obligation to collect it. To do so would be to flout the law and internal policy.
Second, the terminology here has perhaps suffered some mission creep.
Settlement is you agreeing to pay whatever sum you and HMRC agree is due. The mechanics of that settlement are achieved via either appeals against assessments being withdrawn (and tax becoming due) or taking up the offer of the informal and discretionary settlement, the latest of which was published in November 2017.
Once settlement has been agreed, you can discuss how to pay it. We call this a "time to pay" arrangement. This is where you and HMRC agree that you will pay £x per month over y period. If you pay over a period, HMRC is in the habit of charging forward interest.
However, settlement is agreeing the value of tax and interest owed, time to pay is agreeing the payment plan.
Third, Unless you can find an individual HMRC prepared to risk unlawful and career threatening action, no adviser can "negotiate". The terms are fixed and the only discussion is over the time to pay.
Fourth, advisers should for preference be qualified and/or come with a verifiable history of having some tax knowledge. Personally I would say that you should avoid those with historic connections with schemes you are trying to settle as with the best will in the world, the potential for a conflict of interest is high. (I'm sure that many professional advisers do their best to guard against such conflicts and in settlement work, this is a more limited "problem", but be careful and research who you choose.
Lastly, LCAG for all their good work in political circles and raising the profile of one aspect of this whole sorry mess, are a lobby and action group. They are not advisers. I'm sure that they have good contacts with advisers (I know that they do with us) and that their members can produce many examples of how HMRC treats and has treated people which may be useful. However, they do not agree settlement or negotiate time to pay with HMRC.
You can do that yourself. You can ask/pay and adviser to do it. You can ask/pay a scheme promoter to do it (although I recommend you don't).
You can ask LCAG to do it and for all I know they will. However LCAG is a group of individuals in the same situation as you and whilst a pool of knowledge to draw upon is good, it may not be what is needed. It may be that LCAG can recommend a course of action that has worked for others. LCAG may recommend an adviser. Just ask them what they can and not do.
First, HMRC is UNABLE to reduce or mitigate interest that has arisen on unpaid tax. If you have agreed that the tax is due and it is paid late, then interest arises and HMRC has no power to put aside the legal obligation to collect it. To do so would be to flout the law and internal policy.
Second, the terminology here has perhaps suffered some mission creep.
Settlement is you agreeing to pay whatever sum you and HMRC agree is due. The mechanics of that settlement are achieved via either appeals against assessments being withdrawn (and tax becoming due) or taking up the offer of the informal and discretionary settlement, the latest of which was published in November 2017.
Once settlement has been agreed, you can discuss how to pay it. We call this a "time to pay" arrangement. This is where you and HMRC agree that you will pay £x per month over y period. If you pay over a period, HMRC is in the habit of charging forward interest.
However, settlement is agreeing the value of tax and interest owed, time to pay is agreeing the payment plan.
Third, Unless you can find an individual HMRC prepared to risk unlawful and career threatening action, no adviser can "negotiate". The terms are fixed and the only discussion is over the time to pay.
Fourth, advisers should for preference be qualified and/or come with a verifiable history of having some tax knowledge. Personally I would say that you should avoid those with historic connections with schemes you are trying to settle as with the best will in the world, the potential for a conflict of interest is high. (I'm sure that many professional advisers do their best to guard against such conflicts and in settlement work, this is a more limited "problem", but be careful and research who you choose.
Lastly, LCAG for all their good work in political circles and raising the profile of one aspect of this whole sorry mess, are a lobby and action group. They are not advisers. I'm sure that they have good contacts with advisers (I know that they do with us) and that their members can produce many examples of how HMRC treats and has treated people which may be useful. However, they do not agree settlement or negotiate time to pay with HMRC.
You can do that yourself. You can ask/pay and adviser to do it. You can ask/pay a scheme promoter to do it (although I recommend you don't).
You can ask LCAG to do it and for all I know they will. However LCAG is a group of individuals in the same situation as you and whilst a pool of knowledge to draw upon is good, it may not be what is needed. It may be that LCAG can recommend a course of action that has worked for others. LCAG may recommend an adviser. Just ask them what they can and not do.
Comment