Making an ‘unprompted’ or voluntary approach to HMRC to tell them about any irregularities with your tax affairs rather than waiting for them to catch up with you, is usually a far better option. It can, in the most serious cases, be the difference between dealing with HMRC under a civil basis with a view to reaching settlement or have HMRC carrying out an investigation with a view towards criminal prosecution. It is also worth noting that a voluntary disclosure will most likely reduce any financial penalties charged by HMRC.
Where the behaviour involved is clearly ‘deliberate’, a voluntary request to participate in the COP9 contractual disclosure facility can still be made. The benefit of doing so, apart from a much lower penalty, is that subject to making a full and complete disclosure HMRC will not proceed with their own enquiry with a view to possible prosecution.
Morley Tax has many years of experience in making voluntary disclosures to HMRC on behalf of clients and can guide you with the right disclosure route and options available to you.
Benefits of making a voluntary disclosure:
- Lower penalties
- Avoid prosecution in the most serious cases
- Quicker resolution
