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HMRC internal manual

Enquiry Manual

Contract Settlements: Settlement Meeting: Future Conduct

The guidance about contract settlements at EM6000+ only relates to direct tax. You must never include VAT or VAT penalties in a contract settlement.

At the conclusion of the settlement meeting, you should reiterate to the taxpayer that HMRC will expect future returns (and accounts) outstanding for accounting years ending after the end of the enquiry period, to reflect fully the new level of profits established by the enquiry. Where the taxpayer’s records have been found to be inadequate, you should point out the deficiencies and give advice on how to remedy them, if this has not already been done.