I have not paid the right amount of tax. What should I do?
If you have underpaid tax from previous years, you can bring your tax affairs up to date by making a disclosure to HMRC. There are a number of disclosure facilities available. Choosing the right one will depend on what has happened and why it has happened.
What can I make a disclosure about using the Digital Disclosure Service?
Individuals or companies can make a disclosure about:
• Income Tax
• Capital Gains Tax
• Inheritance Tax
• Corporation Tax
• National Insurance contributions
• Annual Tax for Enveloped Dwellings (ATED)
You can make a disclosure about errors you have made:
• despite taking reasonable care to make sure you paid the right amount of tax
• through carelessness
• through deliberate actions
What should I do if I have deliberately not paid the right amount of tax?
How do I make a disclosure relating to offshore income, assets or gains?
If your disclosure involves income, assets or gains outside of the UK, you should use the
Worldwide Disclosure Facility to make an offshore disclosure.
How do I disclose undeclared rental income?
The HMRC
Let Property Campaign is an opportunity for landlords who owe tax from letting out residential property to get up to date with their tax affairs.
What is a voluntary disclosure?
If you notify HMRC that you want to make a disclosure before HMRC starts an investigation into your tax affairs, or before HMRC writes to you advising you to check your tax position, your disclosure will be treated as a voluntary disclosure.
You can make a
voluntary disclosure using the Digital Disclosure Service,
Worldwide Disclosure Facility or
Contractual Disclosure Facility.
Making a voluntary disclosure will often lead to reduced penalties being charged.
How do I make a disclosure using the Digital Disclosure Service?
The first step is to notify HMRC that you want to make a disclosure. You should do this as soon as possible. Initially, you only need to tell HMRC that you want to make a disclosure. You do not need to give any details of the undisclosed income or the tax that you believe you owe.
You will then have 90 days to make a disclosure. During this period, you will need to review the undeclared income and gains and calculate your tax liability.
You will also need to consider whether any penalties apply and calculate late payment interest.
As a tax investigation specialist inTAX can guide you through every step of this process.
When you submit your disclosure to HMRC you should pay the amount you owe.
What happens if I cannot pay everything I owe?
If you cannot afford to make a payment in full to HMRC, there are options available. We can discuss your individual circumstances with you and give you the appropriate advice.
