HMRC Enquiries & Voluntary Disclosures

If you’re facing an enquiry or need to make a voluntary disclosure, it’s crucial to respond promptly and correctly. We understand that dealing with HMRC can be stressful but you don’t have to go through it alone.

At Stratos, we’re here to guide you through the process, manage all correspondence with HMRC, and ensure your position is properly represented. Our goal is to protect your interests and help bring matters to a fair and timely resolution whilst managing your exposure to penalties and interest.

Why make a Voluntary Disclosure?

Making a voluntary disclosure to HMRC means taking the initiative to inform them that you may have underpaid tax in the past. This proactive approach is generally viewed more favourably by HMRC and often results in reduced penalties and interest, especially when compared to the outcome of an enquiry or investigation initiated by HMRC.

Voluntary disclosure also gives you the opportunity to bring your tax affairs fully up to date, providing peace of mind and helping to reduce the risk of future scrutiny.
By stepping forward voluntarily, you’re demonstrating a clear intention to comply with your tax obligations – a factor that HMRC takes into account when determining how to resolve your case.

The first step in making a voluntary disclosure is to have a discussion about your position and agree on the most appropriate approach. This ensures the disclosure is accurate, tailored to your circumstances, and gives you the best possible outcome.

How to make a voluntary disclosure?

The process for making a voluntary disclosure to HMRC can vary depending on your specific circumstances, so it’s vital to seek specialist advice to ensure you follow the correct procedure. Here’s an outline of the typical steps involved:

• Notify HMRC: You must formally inform HMRC that you wish to make a voluntary disclosure. There are a number of different ways of doing this depending on what the disclosure relates to and we will support you to make sure the right disclosure is made.
• Identify Mistakes and Omissions: You’ll need to provide a full explanation of any errors, omissions, or miscalculations in your tax records. This includes identifying the relevant tax years or periods in which you believe tax was underpaid.
• Calculate Outstanding Liabilities: You’ll need to calculate the total tax owed, along with any interest and penalties due. This will typically require professional assistance to ensure all calculations are accurate and comprehensive.
• HMRC Review: After receiving your disclosure, HMRC will review the information provided. They may request further details or clarifications to assess the full extent of the underpayment.
• Formal Agreement: Once HMRC is satisfied with the disclosure, you can agree to a formal settlement, which may include payment of any owed taxes, interest, and agreed-upon penalties.

Enquiries

If HMRC suspects that you or your business may have underpaid tax or failed to meet your tax obligations, they may open a formal enquiry. This can involve a detailed review of your tax returns and records.

You’ll usually receive an official letter from HMRC setting out the specific areas they intend to investigate.

If you receive a notice of enquiry from HMRC, you’ll typically be required to respond within 30 days, providing the information they’ve requested. At this stage, it’s highly recommended to speak with a tax adviser. They can help determine whether HMRC is entitled to open the enquiry in the first place and provide expert guidance on how best to respond, ensuring your interests are protected throughout the process.

Why Stratos?

We understand that facing an HMRC enquiry or considering a voluntary disclosure can feel stressful and uncertain. We will guide you through the process so you have confidence that your affairs will be resolved. When you work with Stratos, you’ll benefit from a dedicated team of tax specialists who will:

• Liaise Directly with HMRC: We act as your representative, managing all communication with HMRC professionally and efficiently to relieve the pressure from you.
• Review Your Circumstances Thoroughly: We’ll take the time to understand your situation in detail and advise on the most appropriate course of action – whether you’re disclosing an issue or responding to an enquiry.
• Minimise Penalties and Interest: Our experience allows us to identify opportunities to reduce penalties and interest wherever possible, helping you achieve a fair and cost-effective outcome.
• Provide Reassurance and Peace of Mind: From start to finish, we’ll ensure that your tax affairs are handled correctly and with care, giving you the peace of mind that everything is being managed to the highest standard.