Do I Need to Make a Voluntary Disclosure to HMRC?

It’s easy to assume HMRC know everything, but much of the UK tax system relies on taxpayers, employers, and sales platforms providing the right information. Realising you might have made a mistake after submitting everything can be a scary feeling, but HMRC actively encourage taxpayers to come forward and make a voluntary disclosure if they find themselves in that situation.

Is making a disclosure the same as changing my tax return?

No, making a disclosure is a different process to making changes to a tax return you’ve already submitted.

• You’ll often be able to amend a tax return you’ve already submitted up to 12 months after its due date (depending on the type of tax it relates to)
• You might need to make a disclosure if the window to make changes has ended, or if you didn’t submit a tax return and should have done

What types of tax can I make a voluntary disclosure for?

You can make a voluntary disclosure about any type of tax including income tax, Corporation Tax if you run a limited company, Capital Gains Tax, and even National Insurance.

Why might I need to make a voluntary disclosure?

Tax returns can be very confusing documents, so it’s perfectly understandable you might make a mistake. Even a typing error in your bookkeeping records can cause you to report your profit figures incorrectly and pay the wrong amount of tax. Making a voluntary disclosure to HMRC can help you amend the error.

When should I make a voluntary disclosure?

You should tell HMRC as soon as you realise a mistake has been made, even if you don’t think you will need to pay more tax. If you’re not sure, try to speak to your accountant as soon as possible so they’re aware, and can advise you on what to do next.

How do I make a voluntary disclosure?

There are several options available for making a voluntary disclosure, including through HMRC’s Digital Disclosure Service. This is a convenient way of informing HMRC a mistake has been made, so they can process and assess it.

What happens after I make a disclosure?

HMRC will normally send out an acknowledgement letter containing your unique Disclosure Reference Number (DRN) within two weeks of receiving your disclosure. They’ll contact you with any follow-up questions or to request further evidence where necessary before deciding whether or not to accept the disclosure you made.

If accepted, you’ll be contacted again with a Payment Reference Number (PRN) so you can pay any additional tax you owe by the deadline shown on the letter.

What information will I need?

HMRC might ask for additional information, such as annual accounts, bank statements and bookkeeping records. It’s best to be as transparent and cooperative as possible to minimise disruption.

Penalties for mistakes

You may be hit with a penalty if the mistake or omission was due to careless or deliberate behaviour. The consequences of not reporting a mistake on your tax return could be much worse! So although making a voluntary disclosure may be an uncomfortable process, it’s much better to get it done and out of the way.

What if HMRC contact me first?

HMRC do cross-check information against different sources, so you might hear from them before you even realise a mistake was made. They also carry out spot checks and audits on a random basis, so getting a letter doesn’t necessarily mean anything is wrong!

And on that note, if you do receive a letter from HMRC, it’s well worth double-checking who made the mistake – it might be them!

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