We were recently approached by a client from North London who had several sources of income including foreign income and capital gain from trading on the global stock market. The client informed us that he had not declared his income for over 15 years and was unaware and unsure as to how he should go…
HMRC gives an opportunity to individuals and businesses to come forward voluntarily and disclose a previously unknown source of taxable income. Individuals and companies get a chance to sort out their taxes and bring their financial affairs up to date. If you have an unpaid tax on your income and are ready to make a disclosure, you will have 90 days to calculate and pay what you owe. Voluntary tax disclosure can be used to make disclosures about:
• Income Tax
• Capital Gains Tax
• National Insurance contributions
• Corporation Tax
There could be many reasons that might have resulted in your failure to pay the right amount of tax. You may well have started out with the intention of declaring your income and notifying HM Revenue and Customs, but the seeming complications might have deterred you from taking the right step.
Why should you come forward and make a voluntary disclosure?
HMRC is responsible for the collection of taxes, the payment of some forms of state support and the administration of other regulatory regimes including the national minimum wage. They deal with taxpayers who come forward voluntarily to make a disclosure of their unpaid taxes.
For erroneous tax affairs, it is better for you to go to HMRC rather than HMRC coming to you. HM Revenue and Customs contacting you first can prove to be a grave affair. They only contact you after an elaborative research and have specialists whose sole responsibility is to identify those who are facilitating the ‘black economy’.
Another reason to initiate contact in order to make a voluntary disclosure is that HMRC normally charge higher penalties than those they charge if you volunteer to come forward. The penalties could be up to 100% of the unpaid liabilities or up to 200% for the offshore related income. In some serious cases, HMRC may also choose to launch a criminal investigation against you. Receiving a letter from HMRC stating that you are being invested for an unpaid tax can have damaging consequences on your professional and personal lives.
Disclosing to HMRC
Once you intend on making a voluntary disclosure, the next step is to NOTIFY HM Revenue and Customs. You don’t have to give details of the undisclosed income or the tax you believe you owe. You just need to notify HMRC stating that you intend to make a disclosure. You will be required to fill in separate disclosures as HMRC necessitates a separate notification for each person.
You can choose to make a disclosure as soon as you have your Disclosure Reference Number (DRN), which is given by HMRC on being notified. You will be given 90 days, within which you will be required to make your voluntary disclosure.
Depending upon the complexity of your situation, calculating the amount payable could be simple or complicated. You may want to seek professional advice for the same. We at Churchill Tax Advisers specialise in tax law and provide expert advice on all areas of UK and international tax to the general public, accountants, lawyers and solicitors and will expertly guide you through the entire process. Once the income you need to disclose is calculated, work out how much tax you owe on that income. The rates of Income Tax you will pay depend on how much income you earn above your Personal Allowance (the annual amount of tax-free income).
A voluntary tax disclosure to HMRC is the best way of protecting yourself from a penalizing action by HMRC. If you have any undisclosed income, gains, assets or investments here in the United Kingdom or overseas, then you need protection.
How can we help?
Our team of tax investigation specialists consist of tax law experts who possess an in-depth knowledge of the area. They study and analyse your situation and advice you on the best way to approach HMRC to make a voluntary tax disclosure. We have extensive experience in making a voluntary disclosure to HMRC having assisted numerous clients. From notifying HMRC to the initial disclosure, through to negotiating the final settlement and payment terms, we will guide and manage your voluntary disclosure to get you through the entire process swiftly and effectively.
We will seek to reduce the extent of HMRC’s potential enquiry, significantly diminish the potential financial penalties that could be charged and minimise the chance of HMRC publishing details about you on its ‘Tax Defaulters’ website. With our involvement, we have prevented our clients from being criminally investigated, or worse, prosecuted.
Do not take a letter from HMRC stating that you are being investigated for unpaid tax on undeclared income lightly. This can lead to serious consequences and disrupt your personal and professional life.
If you are contemplating making a voluntary tax disclosure or have received a letter from HMRC asking you to make a disclosure under Worldwide Disclosure Facility or Let Property Campaign, please call our helpline on 0203 5000 853 to speak in confidence with a tax disclosure specialist.
If have you received a letter from HMRC regarding having undeclared income and asking you to make a disclosure through Worldwide Disclosure Facility, then you must take this seriously and take professional advice as soon as possible. Call us now on 0203 5000 853 to speak to a tax specialist in relation to your case.
What is Worldwide Disclosure Facility?
Worldwide Disclosure Facility was introduced by HMRC in 2016 and replaces the Liechtenstein Disclosure Facility.
Under the Worldwide Disclosure Facility, individuals resident in the UK or living abroad have an opportunity to make a full disclose of their undeclared income (overseas or UK) and pay the appropriate amount of tax in the UK.
HMRC has offered a number of options for tax payers to make a disclosure of any undeclared income and pay the right amount of tax. The Let Property Campaign is another route allowing landlords to make a full declaration of undeclared rental income to HMRC and pay the right amount of tax and penalties. Churchill Tax Advisers specialise in making voluntary and non voluntary tax disclosures and have been advising in this area for over 15 years. Our experience and expertise in making disclosures through the Let Property Campaign will ensure you pay the least amount of tax and penalties.
The HMRC gives opportunities individuals who let out their properties on rent to come forward and disclose any previously undisclosed income from rental properties. Under the Let Property Campaign an individual can disclose any taxes he or she owes to the HMRC from the properties they have rented out. The individual would be required inform…
Voluntary tax disclosure, as the name suggests, is the opportunity given to tax payers in the United Kingdom to come forward of their own free will to disclose any tax discrepancies faced by them. The disclosure can be made to the Customer Relationship Manager (CRM), local compliance, or any other appropriate office of the HMRC….
Churchill tax advisers offer the perfect platform to make any enquires about voluntary tax disclosures. Their team of specialists were able to correctly guide me through every enquiry made by me and assured me my privacy. They helped me understand the intricacies of the different routes to disclose undeclared income.
I was looking to disclose my undeclared offshore income to HMRC but did not know how to go about it. This is when I got to know about Churchill tax advisers who handled my tax disclosure case expertly. They were able to advice me on every aspect of my case and were happy to answer all my queries and questions.
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