Disclosure Reports

If HMRC conduct an enquiry into suspected serious fraud under Code of Practice 9 and the taxpayer agrees there are tax irregularities a Disclosure Report will be required. Sometimes an enquiry under Code of Practice 8, where serious fraud is not suspected, will also require a Disclosure Report.

HMRC say that the nature of Disclosure Reports will depend on the individual circumstances of the case. Areas to be covered in the report will be:

• a brief business history;
• the nature of the irregularities and how they came about;
• the extent of the irregularities:
• steps taken to verify amounts with supporting documentation and any assumptions made;
• a detailed schedule of the irregularities for each period involved for each tax.

HMRC also say,

“Your disclosure report and subsequent returns must reflect the correct position. If we discover that the irregularities have continued during the course of the investigation, this may be reflected in the level of penalties.”

Disclosure Reports may need to cover a period of up to 20 years and should have all the information and documents to explain the whole position to the Inspector. Ideally, the Report should be so comprehensive and detailed that it satisfies the Inspector that the disclosure is correct and complete without further enquiry.

EDF Tax offer experience of this process and the skills and resources to produce a comprehensive Report within the agreed timescales. Of course this depends on all the necessary information being provided to us.

Our approach is non judgmental and geared to achieving the best result for you as quickly as possible.  While we aspire to a productive relationship with Inspectors of Taxes we will present your case vigorously and robustly.  At all times you will be kept informed of developments and options for settlement will always be clearly explained to you.

We can also assist your accountant with the preparation of a Disclosure Report or review, with an Inspector’s eye, a Report that has been prepared for you.

For further information please contact Iain Macleod on 0115 983 5580 or mobile 07920 146800 or email Iain at imacleod@edftax.co.uk