Making a voluntary Disclosure
We can all make mistakes. Sometimes, businesses or individuals make a genuine mistake resulting in an underpayment of tax, PAYE/NIC or VAT. Whatever the reason, HM Revenue & Customs have the power to pursue you for information and the current penalty regime means that they can penalise you heavily for mistakes that they discover in your tax affairs.
However, HMRC will take into consideration the value of a taxpayer making a voluntary tax disclosure once you become aware of a mistake and before HMRC conduct and enquiry of their own. While you will still be required to pay all the tax due plus interest, HMRC can offer a significant reduction in penalties to a taxpayer who has chosen to make a voluntary disclosure.
Setting matters right
Whether you are considering making a voluntary tax disclosure regarding UK taxes or dealing with the more complex issue of offshore disclosure, we can help you decide on the best course of action. Our team have considerable experience in dealing with these matters both from within HMRC and the Profession.
HMRC offer a number of disclosure facilities at any one time. We can provide advice on which will be most suited to your individual circumstances and provide all the necessary support in making a full disclosure to HMRC.
Disclosing UK income and assets
For taxpayers wishing to make a voluntary disclosure relating to tax fraud, HMRC may offer the Contractual Disclosure Facility.
Disclosing offshore income and assets
Tax Information Exchange Agreements (TIEAs) have been signed between the UK and a number of British Overseas Territories, which will enable HMRC to ensure that the correct tax is being paid on offshore assets held by UK taxpayers.
A UK taxpayer is able to declare any offshore asset or income under the terms of the Worldwide Disclosure Facility (the WDF)
Current HMRC campaigns are as follows:
Let property Campaign
Second Incomes Campaign
Credit/Debit Card Transaction Programme
Previously HMRC have used the Liechtenstein Disclosure Facility (the LDF) and those of Guernsey, Jersey or the Isle of Man to make disclosures all of which closed on 31 December 2015:
Liechtenstein Disclosure Facility
Isle of Man Disclosure Facility
Guernsey Disclosure Facility
Jersey Disclosure Facility
Taxpayers with a Swiss bank account may have opted to bring their affairs up to date by paying a one off withholding tax under the UK/Swiss Tax Agreement in May 2013.