Disclosure of Undeclared Income

Undeclared Income

 

Disclosure of Undeclared Income

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 Of Undeclared Income

Prompted disclosures will usually carry higher penalties. It is important to seek professional advice, which will:

  • help prevent an HMRC data fishing exercise
  • ensure a high-quality disclosure, which will result in lower penalties
  • enable negotiations with HMRC to achieve the best possible outcome
  • ensure the best defence against criminal prosecution (if necessary)

Why disclose now?

  • Increased chance of discovery
  • There is now an automatic exchange of financial information between countries – the Common Reporting Standard
  • HMRC’s ‘connect’ software allows the collection and analysis of billions of lines of data, meaning individuals are more susceptible to the investigation by HMRC (whether correctly or not)

Increased consequences of non-disclosure

  • Higher penalties from HMRC for offshore offences (up to 300% penalty)
  • Reputational damage from HMRC’s ‘Name and Shame’
  • Change in HMRC stance (more prosecutions)

For a face to face meeting with a client services team member, contact us  today on (+44) 0207 183 9448 or email: dilwar.hussain@bts-online.co.uk