HMRC uses targeted campaigns to recover underpaid taxes and penalties from 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 aren’t eligible for a specific HMRC Campaign. The service is known as the Digital Disclosure Service (DDS). The guidance has recently been updated to include a changed email address for sending a full disclosure.
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)
- making a formal offer together with payment.
Are There Any Benefits To Making A Voluntary Disclosure?
Taxpayers that come forward voluntarily will usually benefit from better terms and lower penalties for making a disclosure. 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.
Making a disclosure will involve submitting the relevant returns to HMRC, this is where MJB can assist you. We understand that things can get missed, we’re here to help move you and your business forward, give us a call and discuss your requirements today (08000) 388 799
Source: Informanagement