Tax Disputes & Investigations

Disclosures to HMRC

A voluntary tax disclosure to HM Revenue & Customs (HMRC) is undoubtedly the best way to protect yourself from either a criminal tax investigation or, worse still, a tax prosecution.  In addition, a full, voluntary disclosure will also prevent HMRC from publishing details about you on its 'Tax Defaulters' website.  By approaching HMRC (rather than risking HMRC initiating a tax investigation), taxpayers can also help reduce the potential financial penalties that could be charged.  

What is HMRC's current approach in tackling non-compliance?

HMRC believes that over 1.5 million individuals and some 300,000 businesses are not paying the correct amount of tax due to tax fraud, tax evasion and/or criminal attack. In January 2011, the National Fraud Authority estimated that tax fraud cost the UK Exchequer £15billion a year.

HMRC is currently investing £900million in its front-line tax investigation compliance work. Its target is collect £7billion of additional tax revenue by 2014-15. To assist HMRC in reaching this target, the Government has 'beefed up' HMRC's powers to inspect and request information and documents about your business and personal financial affairs. HMRC has also stated that it intends to increase the number of taxpayers that it will criminally investigate.

Criminal investigations are resource intensive, expensive and time consuming so HMRC's priority in recent years has been to tackle tax fraud (or non-compliance (including the hidden economy)) via its Civil Investigation of Fraud (CIF) procedures and various disclosure facilities and campaigns.

HMRC's approach is to use targeted Campaigns rather than offering a general tax amnesty. In the period to June 2011, HMRC had raised more than £500million from voluntary disclosures made using targeted campaigns and a further £100million from follow-up activity. HMRC campaigns have targeted offshore accounts and investments, medical professionals and people working in the plumbing industry. In 2011/12, HMRC will be targeting VAT rule breakers, those involved in private tuition and coaching, e-market places and further trades.

The modern-day taxman is better informed than ever before and is actively searching the internet and other media outlets for information about you. HMRC uses sophisticated software to identify and link information it receives or obtains about individuals or their businesses. No business or trade sector can consider itself 'untouchable'. HMRC has already amassed data and intelligence from individual compliance checks and third party research/intelligence (e.g. banks, trade associations, internet and national/local media searches). It is constantly assessing the risks identified as part of its work and is looking for more and more ways to access information about payments made to and by business sectors.

Is now the time to disclose?

Whilst there will be future targeted campaigns and disclosure opportunities, you should not wait to disclose errors in your tax affairs to HMRC. There is no guarantee that HMRC will offer a disclosure facility that suits you or, moreover, that HMRC will not commence a formal investigation of your affairs before any such facility is offered. HMRC has assured those who voluntarily come forward to put their tax affairs in order that they can expect very similar terms to those offered via targeted campaigns and disclosure opportunities. Without doubt, a voluntary approach to HMRC is the best way to protect yourself from being either criminally investigated or, worse still, prosecuted. In addition, a full, voluntary disclosure will also prevent HMRC from publishing details about you on its 'Tax Defaulters' website.

By approaching HMRC (rather than risking HMRC initiating an investigation), taxpayers can also help reduce the potential financial penalties that could be charged.

How can OneE TDI help?

If you know or suspect that you need to disclose undeclared income, profits and/or gains to HMRC (whether they arise in the UK or offshore), you should seek specialist advice before doing so. The management of the disclosure process and the way in which the relevant facts are presented to HMRC are key to achieving maximum penalty mitigation and protecting you from further enquiry by HMRC. In addition, you can also protect yourself from being 'named and shamed' by HMRC as part of its 'Publishing the Names of Deliberate Defaulters' programme.

At the core of OneE TDI is a highly experienced team specialising in all areas of tax disputes and investigations. We offer confidential, non-judgemental and invaluable advice to best defend our clients. We have a proven track record in managing all contentious tax matters and provide an outstanding, cost-effective service which results in tangible benefits and savings for our clients. We have up-to-date knowledge of all HMRC Campaigns and disclosure facilities and are able to secure the best available terms for our clients.

We take control of and manage all issues relating to tax disclosures so that our clients can get on with their life and their business interests. What price peace of mind?

Please see the Testimonials kindly provided by our clients (or their accountants or lawyers), which confirm our levels of client service.

How can I contact OneE TDI?

If you would like a free, no obligation discussion with us please contact either Gary Rowson or Mark Taylor on 0800 652 6156 or complete and submit the online form below:

Whilst we endeavour to provide informative and accurate information, the content on this site is for general information purposes only and should not be taken to constitute tax or legal advice which must always be tailored to individual circumstances. Please contact us if you would like to discuss matters.

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