Making a Voluntary Disclosure
Sometimes people discover an error in their tax returns. This could be a one off mistake or the realisation that income has been understated or expenditure over-claimed, perhaps over several years. When you discover your tax return is wrong you have a responsibility to inform HMRC of the error and, generally, to pay the tax, NIC and interest. Penalties may also arise.
Also, it is usually to the taxpayer’s advantage to make a complete and unprompted disclosure of underpayments of tax. HMRC say on their web-site:
“When considering whether a case should be investigated under the Civil Investigation of Fraud procedures or is the subject of a criminal investigation, one factor will be whether the taxpayer(s) has made a complete and unprompted disclosure of the offences committed.”
A disclosure may give rise to a more wide-ranging HMRC enquiry and if the amounts are large enough it could involve the Civil Investigation of Fraud procedures under Code of Practice 9 (COP 9). While a COP 9 enquiry is a very serious matter, if HMRC do decide to offer it to a taxpayer it means there will be no criminal prosecution if the disclosure is correct and complete.
It is essential that any tax irregularities stop immediately.
We have the experience, resources and skills to represent you in what can be a difficult and demanding time.
We will guide you through the process and represent you with HMRC. 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 will:
- quantify the disclosure,
- advise on which branch of HMRC to approach,
- compile any Disclosure Report
- advise on how many years HMRC can assess
- negotiate the amount of any penalty
- Conclude the enquiry
For further information please contact Iain Macleod on 0115 983 5580 or mobile 07920 146800 or email Iain at imacleod@edftax.co.uk
