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Making a voluntary disclosure in the United Kingdom

(Partner Content) HMRC uses targeted campaigns to recover underpaid taxes and penalties.


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These campaigns are targeted at specific sectors and industries usually where significant underpayment of tax has been identified.

HMRC also publishes separate guidance for individuals and companies who need to make a voluntary disclosure but who are not eligible for a specific HMRC Campaign. The service is known as the Digital Disclosure Service (DDS).

The Digital Disclosure Service

Guidance has recently been updated with information about rights when considering penalties and what to do if help is required.

There are three main stages to making a disclosure, notifying HMRC that you wish to make a disclosure, preparing an actual disclosure (within 90 days from the date HMRC acknowledged your notification) and making a formal offer together with payment.

Taxpayers that come forward voluntarily will usually benefit from better terms and lower penalties. The actual rate of the penalties will vary depending on the specific circumstances. There are higher penalties for offshore liabilities.

For undisclosed liabilities, the penalties could be up to 100% of the unpaid liabilities, or up to 200% for offshore related income.

For more information or for assistance, please contact Exceed.

Also read: VAT: Option to tax changes extended in the UK