HMRC Tax Voluntary Disclosure Is Better Than Waiting For The Taxman To Come Knocking

Unprompted disclosure is always better than waiting for HRMC to discover the tax compliance failures and unpaid tax but how do you make an HMRC tax voluntary disclosure?

You need to ensure that you come completely clean to HMRC when you make a voluntary disclosure otherwise the penalties that you could face later on could be very expensive. Such penalties could amount to anything to 100% of the unpaid tax and in some cases even more.

The taxpayer has a duty to SELF ASSESS  their taxes and in doing so comply with the tax laws when making disclosures to HMRC every time they are required to submit a tax return.

Overview Of How To Make HMRC Tax Voluntary Disclosure

1.1 Duty Of Disclosure To HMRC

If you owe tax on your income you MUST tell HMRC about any unpaid tax. You have 90 days to calculate and pay what you owe.

If mistakes or errors arise in tax returns or even if returns are not submitted. The duty is on the taxpayer to come ‘clean’ to HMRC. In the case of Nicholson v Morris (H M Inspector of Taxes) 51 TC 95 the following was said:

“It is the taxpayer who knows and the taxpayer who is in a position (or, if not in a position, who certainly should be in a position) to provide the right answer, and chapter and verse for the right answer, and it is idle for any taxpayer to say to the Revenue, “Hidden somewhere in your vaults are the right answers: go thou and dig them out of the vaults.” That is not a duty on the Revenue…It is the duty of every individual taxpayer to make his own return and, if challenged, to support the return he has made, or, if that return cannot be supported, to come completely clean…”.

1.2 Typical Types of HMRC Taxes

The typical types of HRMC Taxes involved will be:

  • Income Tax
  • Capital Gains Tax
  • National Insurance contributions
  • Corporation Tax
  • VAT

Examples include a business that has not declared all of its income or a business that’s trading and has not registered with HMRC for one or more taxes.

1.3 How To Make An HMRC Tax Voluntary Disclosure

To make a disclosure you should:

  • tell HMRC that you want to make a disclosure
  • tell HMRC about all income, gains, tax and duties you have not told HMRC about before making a formal offer to deal with the matter
  • pay what you owe

help HMRC as much as you can if it asks you for more information

1.4 Why You Should Make Your HMRC Tax Voluntary Disclosure

It does not matter why your tax affairs are wrong, it is better to go to HMRC and admit any failures or inaccuracies rather than wait until it contacts you. Your credibility with HMRC may suffer if you wait for HMRC to come to you.

1.5 If You Have Undisclosed HMRC Tax Liabilities And Fail To Disclose

HMRC is targeting tax evasion and tax avoidance. It may use the information it holds to identify customers who have not declared all their income.

If you owe additional taxes HMRC has the right to charge higher penalties than those it charges if you come forward. The penalties could be up to 100% of the unpaid liabilities or up to 200% for offshore-related income.

In serious cases, it may consider starting a criminal investigation, in line with HMRC’s criminal investigation policy.

2. How To Notify And Disclose To HMRC

2.1 Notify

You must tell HMRC that you intend to make a disclosure. You need to do this as soon as you know that you owe tax.

At this stage, you only need to tell HMRC that you will be making a disclosure. You do not need to give any details of the undisclosed income or the tax you believe you owe.

You can tell HMRC about a disclosure you will be making:

  • about your own tax affairs or your company’s tax affairs (if you are a director, or company secretary)
  • on behalf of someone else (for example, if you are a tax adviser or personal representative)
  • about a trust or estate
  • about a limited liability partnership

You should not include details for more than one person or company in a disclosure. For example, if a husband and wife have undisclosed income, they must fill in separate disclosures, showing the share of the income they need to disclose. It needs a separate notification for each person. If HMRC needs a disclosure for a company and for a director, this should be on 2 separate disclosures.

Individuals and companies

Individuals and companies can notify by completing the Digital Disclosure Service (“DDS”) form.

HMRC will write to you to tell you your unique Disclosure Reference Number (“DRN”). Use this whenever you contact HMRC about your disclosure.

You will also be given a Payment Reference Number (“PRN”) to use when paying what you owe.

Agents

You should use the DDS to notify HMRC of your client’s disclosure. HMRC will then send you a DRN and a PRN.

An agent’s client can use form COMP1a to allow HMRC to deal directly with you about a disclosure made using the DDS.

If you have notified and realise you no longer need to make a disclosure you must tell HMRC by calling the helpline. If you do not, HMRC will take follow-up action to secure a disclosure from you.

2.2 Disclose

You can do this as soon as you have your DRN. But you must disclose within 90 days of the date that HMRC acknowledges your notification.

You can make a disclosure:

  • about your own tax affairs or your company’s tax affairs if you are a director or company secretary
  • on behalf of someone else (for example, if you are a tax adviser)
  • about a trust or estate about a limited liability partnership

When you submit your disclosure you must pay what you owe using the PRN.

Make sure that it get your disclosure and payment within 90 days of the date it issues the notification acknowledgement. If you cannot pay what you owe by the deadline it give you, you must have made payment arrangements with HMRC by that date.

You must do this before you submit your disclosure.

3. How To Prepare Your HMRC Voluntary Tax Disclosure

3.1 How To Calculate What You Owe

Depending on your circumstances this could be simple or complicated. You may want to get independent professional advice. Although you have 90 days from the date of the notification acknowledgement to make your disclosure, start gathering together your information and records as early as possible.

You will need to work out the additional liabilities for each year that is wrong. You do not need to include any income in your disclosure that you have already declared. This is because tax should already have been paid on this income.

If you have already had PAYE income or told HMRC about some other income and you are now disclosing additional income for any year, make sure that you take this into account in your calculations.

Once you have calculated the income you need to disclose, work out how much tax you owe on that income. The rates of Income Tax you will pay depend on how much income you earn above your Personal Allowance (the annual amount of tax-free income).

For those who make payments on account, you should consider these when making your calculation.

You may be able to use the calculator to work out interest and penalties that are due on tax liability for up to the previous 20 years. You will need to calculate the tax liability due for each year manually prior to using this tool.

If you or your partner are getting tax credits, or you have recently made a claim, you should still make a disclosure but tick the appropriate box on your disclosure form. The information will be passed to the tax credit office to consider. You will be notified separately of any changes it may need to make to the amount of tax credits you get for the relevant years. If you have made a joint claim for tax credits you should tell your partner that the award may be adjusted as a result of your disclosure.

Companies and other organisations (including clubs, societies, associations and other unincorporated bodies) need to determine the amount of Corporation Tax to disclose on the understated profit arising from this undeclared income. The rate of Corporation Tax you will need to pay will depend on circumstances. You will have to consider notifying Companies House if you have submitted accounts that need amending.

3.2 If You Do Dot Have All The Business Records You Need To Make Your Disclosure

  • If your records are incomplete you should estimate the undisclosed income and gains and use this to make your disclosure. It may ask you to explain how you have worked out any estimates you have used, so keep your calculations.
  • You will need your bank statements for the period of your disclosure. If you do not have them, contact your bank as soon as possible to get copies. If you cannot get copy statements, work out your income by using more recent statements as a guide to your income and expenditure. It may ask you to explain why you could not get copy statements.
  • If you have not kept proper business records you should start to immediately. This is your chance to put things right from now on. If it find in the future that you have failed to keep appropriate records, it can penalise you up to £3,000.

3.3 Income To Include In Your HMRC Tax Voluntary Disclosure

  • Include all of the income you have not told HMRC about before in your disclosure.
  • Income earned in either the current tax year or the year before the current tax year

Any income you have had in the current tax year should not be included in your disclosure. If you are not registered for Self Assessment you will need to register now either for Income Tax or in the case of companies, Corporation Tax.

You will need to report this income on a tax return. There are different deadlines for individuals and companies.

You should include the income you had in the year before the current tax year on a tax return rather than in your disclosure. If you have submitted the previous year’s tax return you can make an amendment within 12 months of the statutory filing date.

Income Tax returns

Income Tax returns usually need to be submitted following the end of the tax year:

  • 31 October for paper returns
  • 31 January for online returns

It is probable that for the current and prior year, you will still have time to submit an accurate tax return including this income.

You can make a disclosure for all tax years up to and including 2019 to 2020. But if HMRC sent you a tax return for that year or any year from 2017 to 2018 onwards that’s still outstanding, you must complete each return and do not include these tax years on this disclosure form.

Company Tax Returns

A Company’s Tax Returns should be submitted within 12 months from the accounting period end date.

If your Company Tax Returns are outstanding, you should file all outstanding tax returns that are within 4 years from the end of the accounting period. Include income for earlier years in your disclosure.

3.4 How Many Years To Include In Your Disclosure

The number of years that you need to disclose depends on your understanding of when you should have told HMRC about getting this income or gain.

If you are making a voluntary disclosure, you will know why you have not told HMRC about your income or paid the right amount of tax before. You must decide whether you made an error:

  • despite taking reasonable care
  • because you were careless
  • because it was something you did deliberately
  • where the lost tax involves an offshore matter or transfer which makes the loss of tax significantly harder for HMRC to identify

How much you pay will depend on the answers to those questions.

If you failed to notify HMRC that you’d started in business
  • If you are an individual (including an individual within a partnership), the latest you should tell HMRC that you started in business is 5 October in your business’s second tax year.
  • If, for example, you have tax to pay on income in the tax year ended 5 April 2021, you need to let HMRC know by 5 October 2021.
  • HMRC will issue a newly formed limited company, a form CT41G (Corporation Tax – Information for new companies) within a few days of the company registering with Companies House. This form is usually sent by post to your company’s registered office. If you do not get this form you must still tell HMRC within 3 months of your company becoming active. For example, by starting business activity or starting to trade. The best way to do this is to use HMRC’s Online Service.

If you did not register for a Self Assessment tax return by the appropriate deadline you will have to pay HMRC what you owe up to a maximum of 20 years.

If you have taken reasonable care you will only have to pay HMRC what you owe for a maximum of 4 years if you registered for a Self Assessment tax return by the appropriate deadline, and you:

  • took care to make sure your tax affairs were right
  • still did not pay enough

This means you must:

  • make sure that your tax affairs for the current and later tax years are accurately reported on tax returns by the appropriate deadlines
  • make sure that your tax affairs for the year before the current tax year are reported on the tax return that it issued to you for that year by the appropriate deadline
  • fill in the disclosure form and pay HMRC what you owe for the 3 years before this
If you were careless

If you registered for a Self Assessment tax return by the appropriate deadline but did not pay enough because you were careless, you must pay HMRC what you owe for a maximum of 6 years. This means you must:

  • make sure that your tax affairs for the current and later tax years are accurately reported on tax returns by the appropriate deadlines
  • make sure that your tax affairs for the year prior to the current tax year are reported on the tax return that was issued to you for that year by the appropriate deadline
  • fill in the disclosure form and pay HMRC what you owe for the 5 years prior to this
If you deliberately misled HMRC about this income

If you have deliberately not paid enough tax you will have to pay HMRC what you owe for a maximum of 20 years. Deliberately means that you knew you owed tax but chose not to tell HMRC or that you knew the figures on your tax return were wrong when you submitted it.

If the lost tax involves an offshore matter or offshore transfer which make the loss of tax significantly harder for HMRC to identify

An offshore matter or offshore transfer can apply in the case of Income Tax (including PAYE), Capital Gains Tax or Inheritance Tax.

The number of years you need to disclose depends on your understanding of the income that resulted in the inaccuracy. Where the inaccuracy involved an offshore matter, you will have to pay HMRC what you owe for a maximum of 12 years from the end of the relevant period. The earliest year this applies to is the tax year 2015 to 2016 so you do not need to disclose any inaccuracies of this nature prior to this year where reasonable care has been taken.

Where the inaccuracy is due to careless behaviour the earliest year this applies to is the tax year 2013 to 2014.

3.5 Other Liabilities You Should Include In Your Disclosure

Other income liabilities including non-business income

You must include all income and gains in your disclosure where you have not paid enough tax. This may include:

  • investment income not taxed before you get it, for example, interest
  • taxed income where additional tax is owed
  • income from property or land rental, less the expenses relating to that income

But if your only undeclared income is from residential letting use the Let Property Campaign to disclose this.

Loans to directors: Corporation Tax Act 2010, Section 455

If you are a company director and take money out of your company that’s not a salary or a dividend, over and above any money you have put in, you are classed as having had the benefit of a director’s loan. If this applies, the company may have tax to pay.

You may also separately have to resolve the overdrawn loan account position for the company. It is possible you might be able to do this using one or more of the five simple ways to Clear Director’s Loan Account.

When you pay off a director’s loan that your company has paid Corporation Tax on, your company may be able to reclaim that amount of Corporation Tax paid.

Capital gains

You must disclose all capital gains that you have not declared before. For example, capital gains made on the disposal of investments, such as land, property, shares, stocks, bonds and goodwill.

A company will include its chargeable gains on its Company Tax Return.

3.6 Other Potential Liabilities You Can Tell HMRC About In Your HMRC Tax Voluntary Disclosure

You cannot give details of the liabilities listed below on your disclosure form, but tick the relevant box in the ‘Other potential liability’ section of the form and follow the guidance in the disclosure form and below. The campaigns team will liaise with the relevant department to confirm you successfully resolved any issues with these liabilities.

Employer liabilities

If you employed anyone, you may have to pay some PAYE tax and National Insurance contributions on what you paid to your employees. You need to notify HMRC that you have employment liabilities to settle.

Send these disclosures to:

HM Revenue and Customs

Employer Voluntary Disclosure

BP 3002

Warkworth House

Benton Park View

Newcastle upon Tyne

NE98 1ZZ

Employer liabilities for inbound foreign nationals on assignment to the UK

Employers disclosing inaccuracies for inbound foreign nationals on assignment to the UK should not use the DDS. Instead, you should email the full disclosure to: internationaleddisclosures@hmrc.gov.uk.

Alternatively, you can post the full disclosure to:

Wealthy and Mid-sized Business Compliance

HM Revenue and Customs

S0733

Newcastle upon Tyne

NE98 1ZZ

VAT issues

If you want to make a disclosure of a VAT matter because you have exceeded the VAT threshold and need to register, then you register online or if you cannot, register by post.

Most applications for VAT registration can be done online but there are some circumstances where HMRC needs you to make a postal application. For all standard registration applications, send your form to:

VAT Registration Service

Crown House

Birch Street

Wolverhampton

WV1 4JX

If you have made an error on a VAT Return you have submitted then you can put certain errors right, subject to conditions, by adjusting your VAT Return.

If you do not meet the conditions for adjusting the return then you must make the adjustment in writing. You can notify any error in writing including those where you could make the adjustment on a VAT Return. Use form VAT 652 Notification of errors in VAT Returns.

You can include the details in a letter instead and post to:

HM Revenue and Customs

VAT Error Correction Team

Business Tax Operations Unit

Spur F

Grayfields House

5 Bankhead Avenue

Edinburgh

EH11 4AE

Class 2 National Insurance contributions

If you are self-employed you normally have to pay Class 2 National Insurance contributions. If you have not yet registered to pay Class 2 National Insurance contributions do so immediately so you do not lose out on future benefits. Low earners can apply for a Certificate of Small Earnings Exception and not pay Class 2 National Insurance contributions. You might decide to carry on paying them voluntarily to keep your entitlement to the State Pension and other benefits.

Inheritance Tax and tax during administration periods

Tick the correct box on the disclosure form if you need to tell HMRC about Inheritance Tax. Inheritance Tax is paid if a person’s estate (their property, money and possessions) is worth more than £325,000 when they die. This is called the ‘Inheritance Tax threshold’. It’ll pass your details on to the appropriate department and they’ll contact you if any changes are needed.

Tax credits

If you or your partner are getting tax credits or made a claim, you should still make a disclosure but also tick the appropriate box on the disclosure form. The information will be passed to the tax credit office to consider. You will be notified separately of any changes that may be required to the amount of tax credits you get or have had for the relevant years.

3.7 Interest

HMRC charges interest from the date tax is due until the date it’s paid. Interest is calculated on a daily basis. Any additional tax that’s included in your disclosure will be late and will attract an interest charge. If you do not include the right interest, it’ll reject your disclosure as it’ll be incomplete.

To help individuals there’s a calculator available to help you calculate the right amount of interest due. Only use this if your tax affairs are straightforward and you are only entitled to basic personal allowances.

Companies can refer to HMRC interest rates to work out the amount of interest to pay.

3.8 Penalties

HMRC charges penalties on any additional tax you owe if you:

  • sent HMRC an incorrect tax returnd
  • did not tell HMRC that you are liable to tax

HMRC do not charge interest on these penalties unless you pay them late.

In specific circumstances, it may not be appropriate to allow full reductions for disclosure. For example, if you have taken a significant period to correct your non-compliance, you cannot expect HMRC to agree a full reduction for disclosure. In such cases, it’s unlikely that HMRC will reduce your penalty by more than 10 percentage points above the minimum of the statutory range. For this purpose, it would normally consider a ‘significant period’ to be over 3 years or less where the overall disclosure covers a longer period.

The factsheets on penalties for inaccuracies in returns and penalties for failure to notify have more information on the statutory range for penalties and how they can be reduced. If you think you might not be entitled to the full reduction, you should read these factsheets which provide more detail about calculating any reduction.

As you are making a disclosure, it’s you (rather than a compliance officer), who must consider and calculate any penalties in the way the factsheets describe.

The penalty is a percentage of the additional amount you owe. It can charge penalties of up to:

  • 100% of the tax liability if the income or gain arose in the UK
  • 200% for an offshore liability

Penalties that apply to offshore income and gains depend on the category that the offshore territory falls into. This includes your disclosure.

Although the rate of the penalties will vary depending on your circumstances, they’ll usually be lower if you make a voluntary disclosure.

If you have taken reasonable care with your tax affairs, but you have not declared the right amount of tax you owe, you will not pay any penalties at all. It do not expect many people’s circumstances to fall within this category.

If you have not paid enough tax even though you have taken reasonable care with your affairs or there’s anything else you think it should consider concerning the penalties you have to pay, call the helpline before making your disclosure.

If it think that you have not included the right penalty in your disclosure, it may reject it.

Your rights when considering penalties

When you consider whether you need to pay a penalty in connection with your disclosure, Article 6 of the European Convention on Human Rights gives you certain rights.

You have the right:

  • to seek help from a professional adviser
  • to have the matter of penalties dealt with without unreasonable delay
  • not to incriminate yourself

If you decide that a penalty is due as part of this disclosure opportunity, by making the disclosure about penalties, you will be giving up your right to silence under Article 6. This means it can use anything you decide to tell HMRC when considering your liability to penalties.

The extent to which you co-operate with HMRC and answer HMRC’s questions about penalties will still be a matter for you to decide.

Other penalties

Depending on your circumstances, HMRC may charge other penalties. These include late payment penalties arising because you failed to register at the right time or on tax paid late as a result of understating the tax due on your return.

Calculator

Individuals can use the HMRC calculator to help calculate the interest and penalties due on the income being included in the disclosure.

If a multiple-year disclosure is being made, all years need inclusion in a single calculation. Do not calculate each year on a separate basis.

Use the penalties and interest calculator if you need to include more years in your disclosure. This will help you to calculate the interest and penalties you owe for the last 20 years. This calculator is for interest and penalty calculations only and will not help you calculate the Income Tax due.

Companies can use the Corporation Tax rates and HMRC interest rates to work out the amount of tax and interest due. Calculate penalties using the tax amount understated and apply the appropriate penalty percentage shown in the factsheets on penalties for inaccuracies in returns and penalties for failure to notify.

To calculate the amount to be included in the disclosure follow these steps:

  • Calculate additional Corporation Tax liability.
  • Check the interest table.
  • Apply the right interest to liability calculated in step 1.
  • Apply appropriate penalty to liability calculated in step 1.

When HMRC check your disclosure HMRC will consider whether the penalty you have applied is fair. There is a space on the disclosure form where you can give an explanation to help HMRC reach HMRC’s decision. HMRC may need to contact you to check the fairness of the penalty if you do not give an explanation. If HMRC thinks the penalty you have applied is too low it may carry out a further check of your tax affairs. For example, it may not accept that someone in business for many years, earning significant amounts without telling HMRC, has not done this deliberately.

3.9 The HMRC Tax Voluntary Disclosure Declaration

This is a very important part of your disclosure. You should only fill in the declaration once you are sure that the disclosure is right and complete, and that you understand why HRMC has asked you to include penalties in your disclosure.

3.10 The Offer

As part of your disclosure, you will make an offer to pay your outstanding liabilities. The offer, together with HMRC’s acceptance letter to you will create a legally binding contract between you and HMRC. There’s a letter of offer at the end of your disclosure submission.

4. Pay HMRC

4.1 When To Pay

When you pay, you will need a PRN. You will get the PRN when you notify HMRC that you intend to make a disclosure.

Unless you have contacted HMRC to agree additional time to pay, you should send your payment at the same time as you send your disclosure. HMRC should receive it no later than the 90 day deadline given on your notification acknowledgement letter.

If you do not pay your outstanding liabilities, HMRC will take steps to recover the money.

4.2 Payment Methods

Use the PRN HMRC sent you to make a full payment of your outstanding liabilities. HMRC accept payment by a range of methods.

4.3 If You Cannot Pay The Full Amount

HMRC expects you to pay what you owe when you make your disclosure.

If you cannot pay the full amount, let HMRC know as soon as possible and before you send in your disclosure by calling the helpline.

When you phone, HMRC will want to talk to you about your current financial position so it can tell you what it thinks you should pay and when. To help HMRC decide, you will need to tell HMRC:

  • your DRN
  • how and when you intend to pay what you owe
  • what your current weekly or monthly income and outgoings are
  • what you own, including your home, other property or land, vehicles, investments, money in the bank
  • what you owe, including mortgages, loans and credit cards

If you cannot pay the full amount do not submit your disclosure or payment until you have spoken to HMRC.

5. After HMRC Gets Your Disclosure

5.1 Accepting Your HMRC Tax Voluntary Disclosure

HMRC expects to accept most disclosures. If, after checks, HMRC are satisfied that you have made full disclosure, HMRC will typically accept it as quickly as possible.

5.2 Acknowledging Your HMRC Tax Voluntary Disclosure

When HMRC gets your disclosure, HMRC sends you an acknowledgement as soon as possible. If you have not had an acknowledgement within 2 weeks, call the HMRC helpline.

HMRC expect most disclosures to be self-explanatory but it may need to contact you or your tax adviser to clarify any points. HMRC might also ask you to give evidence of your circumstances to satisfy HMRC that your disclosure is complete. Your full co-operation is one of the conditions of using this opportunity. Failure to co-operate may result in HMRC not accepting your offer.

5.3 Considering Your HMRC Tax Voluntary Disclosure

HMRC will review all disclosures. If after those checks are done it decides to accept your disclosure, it will send you a letter accepting your offer. If HMRC cannot accept the disclosure it will contact you.

If following HMRC’s checks, it finds that a disclosure is largely wrong HMRC will likely seek much higher penalties. It is also possible that in exceptional circumstances, an incomplete disclosure, it may consider it under HMRC’s Criminal Investigation Policy. In such cases, it may use the material in the disclosure as evidence.

5.4 HMRC Tax Voluntary Disclosures That HMRC Is Unlikely To Accept

HMRC will not accept disclosures that are found to be largely wrong or incomplete when it check them.

HMRC is also unlikely to accept disclosures from customers where HMRC has opened an HMRC Tax Investigation or compliance check before you have notified your intention to submit a disclosure under the campaign. Those who want to disclose liabilities under these circumstances should tell the HMRC person conducting the HMRC Tax Investigation.

A full and early disclosure will influence the amount of penalty HMRC seeks in the ongoing investigation.

HMRC will not accept disclosures where it believes the money that is the subject of the disclosure is the proceeds of serious organised crime. Examples of this include VAT fraud, VAT bogus registration fraud, organised tax credit fraud and instances where there’s wider criminality such as an ongoing police investigation.

An important factor for HMRC when it decides if it will carry out civil or criminal investigations into cases of fiscal fraud, is whether the taxpayer has made a full and unprompted disclosure of any amounts evaded or improperly reclaimed. Whilst HMRC do consider each case on its merits, a full and unprompted disclosure would suggest that a civil, rather than criminal, investigation was appropriate.

5.5 Material Omissions In Your HMRC Tax Voluntary Disclosure

If after submitting your disclosure you realise you have missed something out, you should immediately contact HMRC to make an amendment. You can do this by calling the helpline, or writing to:

ISBC, Campaigns and Projects

HM Revenue and Customs

BX9 1QZ

If HMRC gets information indicating that your disclosure was wrong, HMRC has the right to look at your tax affairs again. It may write to you about the information and if necessary, send you HMRC Tax Assessments to collect any extra tax due. These penalties are likely to be higher than those in your disclosure.

5.6 Information HMRC Get After Acceptance Of Your HMRC Tax Voluntary Disclosure

HMRC will continue to get new information that may indicate someone has additional liabilities to tax. It will use this to identify customers where a disclosure could have been made or where the disclosure made is not what was expected based on the information it holds. If it discovers that a customer has an additional liability, the time limits for using this information are determined by the person’s behaviour.

5.7 Publishing Your Details

In certain circumstances, HMRC can publish the details of those penalised for deliberately failing in their tax obligations. If you come forward voluntarily you will earn the maximum reduction of any relevant penalties for the quality of disclosure, and it’ll not publish your details as long as you:

  • notify HMRC that you are going to make a disclosure
  • make a full disclosure including full payment of tax you owe which proves to be both accurate and complete before the deadline it give you
  • cooperate fully with HMRC if it ask you for any further information

HMRC may include you in a list of deliberate defaulters if you do not follow these steps.

5.8 Who Is Liable For Company HMRC Tax Penalties?

A company officer or officers may be liable to pay part, or all of a company’s penalty for a deliberate inaccuracy, failure to notify or wrongdoing, but only where the:

  • inaccuracy, failure or wrongdoing was attributable to the officer
  • officer gained or attempted to gain personally from the offence
  • company is, or is likely to become, insolvent

6. General Information

6.1 Help and advice

Call the helpline if you have any questions that have not been covered by this guide for:

  • Income Tax
  • Capital Gains Tax
  • National Insurance contributions

Telephone

0300 123 1078

Outside the UK

+44 300 123 1078

Opening Times

Monday to Thursday, 8:30am to 5:00pm

Friday 8:30am to 4:30pm

If you use Text Relay by Textphone, dial 18001 + number. If you use Text Relay by telephone dial 18002 + number.

To get help with any other issues or any other taxes or duties, contact the relevant HMRC helpline.

7. Getting Things Right For The Future

Once you have submitted your disclosure, HMRC will expect tax affairs to be kept in good order in the future.

This means that you should continue to accurately declare your income and gains for those years that fall after the latest year you include in your disclosure. You should make sure any tax returns that are issued to you are returned with accurate information by the appropriate deadlines.

Are you an individual or Director that owes HMRC money?

If you are an individual or Director of a company, Oliver Elliot can help you address your concerns arising from an HMRC tax voluntary disclosure.

Find out how

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