HMRC Voluntary Tax Disclosures
It regularly occurs that a taxpayer discovers that a full and accurate declaration to HMRC in respect of trading income, taxable gains or investment income has not been made, thereby resulting in an underpayment of tax due.
In such circumstances, HMRC encourages the taxpayer to rectify the discrepancy by adopting a process known as a ‘Voluntary Disclosure’ thereby, generally, enabling the taxpayer to put their affairs on a proper footing, settle any underpayment of tax without the imposition of significant penalties and minimise exposure to prosecution.
Timothy Thompson of KANGS, explains the procedure.
How To Make A Voluntary Tax Disclosure
HMRC provides an online portal enabling tax disclosures to be made, called the Digital Disclosure Service (DDS), in respect of:
- Income Tax
- Capital Gains Tax
- National Insurance contributions
- Corporation Tax.
Once disclosure has been filed, the process is generally as follows:
- confirmation of filing is issued together with a registration number from HMRC,
- the reasons for not including the information in previous returns will have to be provided to HMRC,
- the amount of outstanding tax plus interest and penalties have to be calculated using HMRC’s online calculators,
- HMRC will then review the complete disclosure, and
- once considered, HMRC will discuss the manner in which it intends to proceed.
Deliberate Underdeclared Income
Deliberately evading payment of any form of tax payable to HMRC is a criminal offence.
However, there are circumstances where it may be possible to avoid prosecution, such as by using another disclosure facility called a Contractual Disclosure Facility (CDF), which is dealt with under Code of Practice 9 (COP9).
Whatever the prevailing circumstances, it is essential that expert professional help is sought prior to making an approach to HMRC.
Who Should I Contact For Help?
The team at KANGS is well versed in dealing with HMRC concerning tax issues at every level.
If you are a corporate entity or an individual involved in or facing a dispute with HMRC then please do not hesitate to contact our team through either any of the following:
Tel: 0333 370 4333
Email: info@kangssolicitors.co.uk
We provide initial no obligation discussion at our three offices in London, Birmingham, and Manchester. Alternatively, discussions can be held through video conferencing or telephone.
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