WHY SHOULD I COME FORWARD AND MAKE A VOLUNTARY DISCLOSURE?
There are many reasons that making a voluntary disclosure may be the right course of action for you. You may well have started out with the best of intentions with regards to notifying HMRC of income which gives rise to a charge to tax, but with the passage of time matters can quickly get out of hand, sometimes it is easier to ignore stark reality and bury your head in the sand. Now is time to take control.
HMRC deal with taxpayers who come forward voluntarily and disclose a previously unknown source of taxable income in wholly more lenient fashion than those who are identified by other means. This is known internally as the voluntary disclosure process.
HMRC’s access to and interrogation of information from third parties sources has improved vastly over recent years, resulting in the creation of specialist hidden economy tax investigation units whose sole responsibility is to identify those who are operating in the “black economy”.
The most serious cases of tax evasion could be considered suitable for a criminal prosecution, but even if the taxpayer is investigated under civil powers, the penalties levied can be as much as 100% of any tax lost.