Why You Need a Specialist Adviser for HMRC’s Contractual Disclosure Facility (CDF)
This page outlines the key reasons why you should seek professional advice before engaging with the CDF process.
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Digital Disclosure Service
If you've received a letter from HMRC regarding your online income or if you wish to correct past inaccuracies in your reporting, consider using the Digital Disclosure Service. Here we explain everything you need to know about the Digital Disclosure Service and how Tax Dispute Experts can assist you.
Expert Guidance
Our skilled team will guide you through the Digital Disclosure Service, ensuring you fully understand the process and meet all HMRC requirements.
Accurate Disclosure
We will help you accurately report your online income and rectify any previous discrepancies, aiming to minimise any potential penalties.
Negotiation with HMRC
Our specialists will negotiate directly with HMRC on your behalf to secure the best possible outcome, working to resolve the matter efficiently and cost-effectively.
What is the Digital Disclosure Service?
The Digital Disclosure Service is an online facility provided by HMRC to enable taxpayers to bring their tax affairs up to date. This service allows individuals and businesses to fully disclose any previously undeclared income or gains under terms that are generally more favourable than those that might be offered if HMRC identifies discrepancies during an investigation.
Who Can Use the Digital Disclosure Service?
The Digital Disclosure Service is available to individuals, companies, and trustees looking to correct their tax records. This includes those who have received a letter from HMRC, prompting them to make a disclosure.
Why Use the HMRC Digital Disclosure Service?
Proactively addressing tax irregularities by making an unprompted disclosure to HMRC can result in significantly lower penalties compared to waiting for HMRC to initiate contact. A complete and accurate disclosure can also provide peace of mind, as HMRC will not open an enquiry into the disclosed issues once they have accepted the disclosure.
Ignoring a nudge letter from HMRC can lead to an enquiry, which may be more time-consuming and costly. Tax Dispute Experts can help ensure your tax affairs are in order, determine if corrective action is needed, and mitigate potential penalties.
Income you have earned from Online Marketplace Sales
If you've recently received a letter from HMRC regarding income from online marketplace sales, it's crucial to act promptly. To understand the steps you need to take and how to handle these letters effectively, read our article on HMRC’s focus on online earnings.
How Far Back Do I Need to Disclose?
The period for which you need to correct your tax affairs depends on several factors, including the nature and duration of the errors. HMRC’s powers to assess tax liabilities are limited by statutory time frames, which can range from four to twenty years, depending on the behaviour that led to the discrepancies and whether you were registered for Self-Assessment during the relevant periods.
Our team of experts can provide tailored advice on how far back your disclosure needs to go, ensuring all taxable liabilities within HMRC’s time limits are accurately reported.
Penalties and How to Reduce Them
HMRC is required to consider financial penalties for identified tax irregularities. These penalties are influenced by factors such as the nature of the behaviour leading to the errors, whether the disclosure was voluntary, and the quality of the disclosure. Penalties are usually calculated as a percentage of the understated tax amount.
Our experienced team is skilled in minimizing these penalties, often achieving the lowest possible penalty under the law. For some clients, this may result in no penalty being charged at all.
How We Can Help
Our Tax Dispute Experts team is dedicated to guiding you through the Digital Disclosure Service process. Our tailored services include:
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Conducting a thorough review of your tax affairs to identify issues that need disclosure.
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Registering you for the Digital Disclosure Service, if appropriate.
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Preparing and submitting a disclosure that minimises unnecessary tax, interest, and penalties.
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Negotiating affordable payment arrangements based on your personal circumstances.
Read Our Insights
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