Starting a new business? Get 40% off our accountancy services for 3 months! 😀


A new initiative launched by HM Revenue & Customs will help taxpayers to avoid the prospect of criminal prosecution if they are suspected of serious fraud. Signing a contract and providing full details in an agreement with HMRC will avoid a criminal investigation.

The Contractual Disclosure Facility is to launch on 31st January 2012, with letters sent out by HMRC to taxpayers who they believe have committed tax fraud. The letters will contain an explanation that HMRC believe they are guilty of fraud, with an invitation to agree to a contract. Under the contract, taxpayers will receive 60 days to provide details of the fraudulent activities.

By agreeing to the contract’s terms and conditions, taxpayers will be liable to pay outstanding tax which is due, plus interest and a penalty. However, the possibility of criminal investigation will be removed, leaving a civil investigation instead. If a taxpayer receives a letter under the new initiative, but chooses not to act, or signs but doesn’t comply with the conditions, they will face criminal investigation and may face prosecution. At the introduction of the new initiative, the exchequer secretary to the Treasury, David Gauke said:

“This new facility is a valuable tool which will help HMRC in its fight against fraud. HMRC will set out clearly what is expected of taxpayers, and what will happen to fraudsters who choose not to disclose their crimes.”

If taxpayers are not invited to join the initiative but wish to disclose details of tax fraud, they may apply to HMRC for consideration for the scheme.

About The Author

Gary Fields

Content Writer working alongside our expert accountants to bring you the latest Tax and Accounting news.

More posts by this author
Inline Feedbacks
View all comments

Read more posts...

Umbrella Companies for Self-Employed Contractors

When you set up in business as a contractor you might either work as a sole trader or as a limited company….

Read More

Get Ready for Small Business Saturday UK 2022

Small Business Saturday started in the US in 2010, on the first Saturday following Thanksgiving. It aims to encourage shoppers to consider…

Read More

Architects and Tax

Architecture is a highly diverse sector when it comes to tax. It’s partly down to the type of businesses that carry out…

Read More
Back to Blog...

Confirm Transactions

The number of monthly transactions you have entered based on your turnover seem high. A transaction is one bookkeeping entry such as a sale, purchase, payment or receipt. Are you sure this is correct?

Yes, submit my quote
No, let me change it

Please contact our sales team if you’re unsure

VAT Returns

It is unlikely you will need this service, unless you are voluntarily registered for VAT.

Are you sure this is correct?

Yes, the business is VAT registered
No, let me change it

Call us on 020 3355 4047 if you’re not sure.


You only need this service if you want us to complete the bookkeeping on your behalf.

Would you prefer to complete your own bookkeeping?


Call us on 020 3355 4047 if you’re not sure.