Making a voluntary disclosure

HMRC’s guidance for individuals and companies who need to make a voluntary disclosure but who aren''t eligible for a specific HMRC Campaign has been updated.

The service is known as the Digital Disclosure Service (DDS). The guidance has recently been updated with additional advice added where the tax loss involves an offshore matter or offshore transfer.

There are three main stages to making a disclosure, notifying HMRC that you wish to make a disclosure, preparing an actual disclosure (within 90 days from the date HMRC acknowledged your notification) and making a formal offer together with payment.

Taxpayers that come forward voluntarily will usually benefit from better terms and lower penalties for making a disclosure. The actual rate of the penalties will vary depending on the specific circumstances. There are higher penalties for offshore liabilities. For undisclosed liabilities, the penalties could be up to 100% of the unpaid liabilities, or up to 200% for offshore related income.