Do I need to do a digital disclosure?

A digital disclosure is an online submission to notify HM Revenue & Customs (HMRC) about past under‑payments or errors in your tax affairs.

HMRC’s Digital Disclosure Service (DDS) is designed for individuals and businesses to bring their tax affairs up to date in a transparent way (read more about the DDS here).

If you’re asking, “do I need to do a digital disclosure?”, here are the scenarios to consider:

When a digital disclosure is suitable

A digital disclosure can be made when:

• You’ve discovered an unpaid tax liability from previous years.
• You’ve deliberately or unintentionally under‑declared income or gains.
• HMRC has sent you a nudge letter, suggesting you review your tax affairs.

The DDS can be used to disclosure undeclared income from self-employment, dividends, Capital Gains Tax and Corporation Tax.

HMRC has several specific disclosure facilities, notably:

• Let Property Campaign (LPC) – for undisclosed rental income
• Worldwide Disclosure Facility (WDF) – for undeclared offshore income, assets or gains
• Contractual Disclosure Facility or Code of Practice 9 (COP9) – for deliberate behaviour and tax fraud

If you need help, inTAX’s experts can guide you to the right disclosure route.

What is a voluntary disclosure?

Making a disclosure of your unpaid tax liabilities to HMRC before they write to you or before HMRC starts a tax investigation is called a ‘voluntary disclosure’.

It’s a proactive move and that will result in reduced penalties. You can make a voluntary disclosure via DDS, WDF or COP9 – your choice depends on the nature of the tax issue.

Advantages of digital disclosure

• Brings your tax affairs up to date, giving you peace of mind
• Lower penalties for voluntary disclosures
• Structured process with 90 day reporting window
• Often no or minimal questions asked by HMRC
• Specialists, like inTAX, can handle disclosures end to end, minimising stress

Why get help from a specialist tax adviser like us?

inTAX’s team are former HMRC inspectors with deep experience in all types of tax investigation and disclosures.

We can help you review your unique circumstances and identify the correct disclosure process for you.

We’ll guide you through the disclosure process, calculate your tax liabilities and handle all correspondence with HMRC on your behalf.

We’ll review whether any penalties will be charged and help to mitigate these.

So, do I need to make a digital disclosure?

If your affairs involve complex matters – especially offshore income – or deliberate tax evasion, a different route like the Worldwide Disclosure Facility or Contractual Disclosure Facility might be more suitable. You should absolutely discuss your circumstances with a specialist!

However, if any of the following apply, a digital disclosure might be right for you:

• You’ve underpaid tax and want to get up to date
• You want to voluntarily disclose before HMRC contacts you
• You’ve received a letter from HMRC about your tax position

Before contacting HMRC, you should always reflect on your tax situation, errors, omissions or recent contact from HMRC.

If in doubt, ask yourself: “Do I need to seek expert advice before making a digital disclosure?”

Talk to inTAX for a no‑obligation chat and our experts will guide you on the best disclosure facility and strategy.

Whether it’s a digital disclosure, worldwide disclosure, or COP9 – we’re ready to support you.

With years of experience, former HMRC inspectors and a friendly, caring approach, we can ensure your best interests are protected.

Get in touch today for expert advice and peace of mind.

You can get in touch with our friendly and experienced team on: 020 3137 7914 or email Jeremy.johnson@intaxltd.com.

inTAX is a specialist tax disputes firm. We deal with disclosures, investigations, and tax enquiries of all descriptions, including COP9, fraud investigations, VAT fraud, tax avoidance, let property disclosures and tribunal appeals. However, we don’t just deal with the serious end of tax investigations; we are also happy to handle smaller enquiries, disputes and problems that can be equally as worrying for our clients.