Voluntary Disclosure
Voluntary disclosure of unpaid or underpaid taxes will result in:
lower professional costs
lower penalties
- allowance for negotiation for protection against criminal prosecution (in serious cases)
Prompted Disclosure
Prompted disclosures usually carry higher penalties. It is important to seek professional advice, which will:
minimise the scope for a wider HMRC enquiry
ensure a good quality of disclosure, which will in turn minimise penalties due
enable negotiations with HMRC to achieve the best possible outcome
ensure the best defence against criminal prosecution (if necessary)
take into account automatic exchange of financial information between countries, which
- advise you about HMRC’s ‘connect’ software, that allows the collection and analysis of billions of lines of data, meaning individuals are more susceptible to HMRC investigation.
Incomplete or non-disclosure can lead to negative consequences including:
higher penalties from HMRC for offshore offences (up to 300% penalty)
reputational damage from HMRC’s ‘Name and Shame’ campaign
a greater likelihood of prosecution
