Voluntary Disclosures

Sometimes businesses, or individuals, discover that, for one reason or another, a mistake has been made and there is an underpayment of tax, PAYE/NIC or VAT and corresponding errors in the returns they have submitted to HMRC. The underlying reasons for the errors could range from a simple mistake to flaws in business records to a manipulation of profits or a fraud perpetrated against a business.

With the new HMRC information powers and penalty regime the ability for HMRC to obtain information and then heavily penalise anything other than a genuine mistake in your tax affairs has increased considerably. Part of the new penalty regime recognises the value of making a voluntary disclosure and owning up to mistakes before being challenged by HMRC.

Of course securing civil treatment by HMRC also reduces the threat of a prosecution and the associated stress and worry involved is a primary benefit of making a voluntary disclosure rather than waiting for HMRC to come to you. You can also avoid being named and shamed on the HMRC website as a tax defaulter by acting in the appropriate fashion and actively working with us to resolve any tax difficulties.