HMRC Disclosure Facility
HMRC have over the last 8 years offered taxpayers a number of HMRC disclosure Facilities.
Each facility has been very targeted and designed to encourage people in certain sectors to come forward and bring their tax affairs up to date where they have made mistakes. Sectors previously targeted by HMRC include, amongst others:
- Medical Practitioners
- Barristers and the Legal Profession
- Plumbers and Electricians
Most HMRC disclosure facility campaigns are targeted with a specific opening and closing date and many have already closed.
HMRC have stated that the purpose of each facility is to offer people (including Companies) a chance to get their tax affairs in order on the best possible terms. Prior to offering a disclosure facility, HMRC will conduct a large information gathering exercise (for example, getting information from letting agents on let property) using their extensive information powers. If people do not partake in the disclosure, HMRC have stated that they will use the information gathered to conduct follow up work. HMRC specifically say that this will include tax investigations and prosecutions.
There are a number of HMRC disclosure facility options still available at the moment including:
That is not to say that tax investigations from other HMRC departments are not serious. It is just that ones from Fraud Investigation Service indicate that HMRC believe that the potential issue is fraudulent or of a serious nature.