Voluntary Tax Disclosure - The Covid-19 pandemic has presented challenges.

One element of this can include individual’s tax footprints and we are currently receiving a significant number of enquiries from those, no doubt spurred on by an increased amount of time to dwell on matters caused by lockdown measures, wishing to bring their tax affairs up to date with HMRC.

In our opinion, now is an ideal time to start a voluntary disclosure and put the first foot on the road to a clean bill of tax health.

HMRC has had to shift its resources into the administration of the government’s schemes to help families and businesses through this current crisis.

When the country does start to move back to relative normality, one of HMRC’s main tasks will be to continue to recover unpaid tax, as it has been doing proactively and effectively over recent years.

In the event that your historic tax declarations are not up to date, the current situation represents a clear opportunity to commence the process of bringing your tax affairs up to date. 

This is something HMRC will no doubt take favourable consideration of as it is recognised that individuals who come forward, rather than being prompted, are in a much better position.

It is our belief that when the furlough grant scheme ceases to operate and HMRC personnel resume their normal functions, there will be a concerted and aggressive push by HMRC to recover unpaid taxes. This will of course include any tax that has been hidden from view previously, for example, through second income that is not declared..

This approach will no doubt be supported by large tranches of the public trying to make their way in the recessionary post lockdown economy.

Making a voluntary disclosure of unpaid tax to HMRC is a sensible option to bring your tax affairs up to date, and to ensure that you are reducing your risk of facing a full tax investigation should HMRC uncover evidence that you have avoided paying tax historically.

Our tax disclosures team have considerable experienced in advising individuals and businesses through voluntary tax disclosures. We would advise contacting ourselves to discuss your circumstances and best way to present your tax disclosure, rather than approaching HMRC directly.