Voluntary and Prompted Disclosure


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