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voluntary disclosures and disclosure faclities

Sometimes irregularities occur in people's tax affairs, but changes in circumstances at a later date mean that they would like to 'come clean' and volunteer the irregularities to HMRC.

Such changes in circumstances may be for example:

  • HMRC has announced that it has received information from a bank where you have funds

  • HMRC has received information from your trade association eg Corgi

  • Where information is likely to reach the public domain in a court hearing.

  • Death of a relative who had undeclared funds.

  • The individuals decide that following severe increases in anxiety and loss of sleep, they will be better off paying what is due and moving on.

However, many people do not know where to start and how to put things right.

In addition to general voluntary disclosures, which can be made at any time, HMRC are allowing groups of people to come forward “en masse” with a commitment to admit to past errors and to pay the right amount of tax in the future.

Although HMRC are targeting groups, such as doctors, dentists and plumbers, they will usually allow other individuals to come forward with undeclared UK income using the same terms as the specific scheme which is running at the time.

We have substantial experience in these areas and can manage the processes on your behalf with HMRC.

Offshore banks disclosures to H M Revenue & Customs (Tax Amnesty)

In 2006, following complicated litigation relating to an information request by H M Revenue & Customs to one of the big four banks in the UK, the Courts held that the bank in the UK was liable to supply to HMRC a list of all UK residents holding accounts with one of their off-shore branches.

Following a facility in 2007 where over 40,000 people disclosed tax irregularities, HMRC decided in 2009 to allow a second similar scheme to run.

The scheme, called New Disclosure Opportunity (NDO), ran between 1 September 2009 and 12 March 2010 giving rise to a further 10,000 disclosures.

Between 2009 and 2015 the Liechtenstein Disclosure Facility (LDF) enables people with assets in Liechtenstein to declare income held overseas and pay a reduced amount of tax, and a fixed penalty of 10%.   This is a good opportunity for individuals to tidy up their tax affairs, even if funds are not currently held in Liechtenstein.

If you have any offshore bank accounts or income which you consider may have given rise to UK tax that has not been paid, then we would strongly advise that you contact us at an early opportunity.  There are ways to sort out overseas held funds, and we can help you through every step of this process.