Collection: Currency of invoice

Updated: HMRC have today released the latest Currency of invoice statistics.

The Currency of Invoice for UK trade with countries outside the EU has been collected under EU legislation since 2010.

Source: HMRC

Detailed guide: Pension schemes: work out your reduced (tapered) annual allowance

Updated: Instructions for defined benefit pension schemes, like career average schemes, have been added.

You’ll need to work out your net, threshold and adjusted income before you check your pension annual allowance to see if you have:

  • to pay an annual allowance tax charge because your pension savings go above the annual allowance for that year, including unused annual allowances from the previous 3 tax years
  • any unused annual allowances from the previous 3 tax years to carry forward

If your adjusted income is over £150,000 your annual allowance in the same tax year will be reduced.

It won’t be reduced if your threshold income for that year is £110,000 or less, no matter what your adjusted income is.

For every £2 your adjusted income goes over £150,000, your annual allowance for that year reduces by £1. The minimum reduced annual allowance you can have is £10,000.

Whatever type of pension scheme you’re in, like a career average scheme, you’ll need to know your pension savings so that you can work out your threshold and adjusted income.

Work out your net income

  1. Add up your taxable income.
  2. Deduct any tax reliefs that apply, like payments made to your pension scheme that had tax relief but were paid before the relief was given
    (because your pension scheme wasn’t set up for automatic relief or someone else paid into your pension).

Work out your threshold income

For each tax year

  1. Start with your net income.
  2. Deduct the gross amount of your pension savings from all schemes (where tax relief has been given at source).
  3. Deduct the amount of any lump sum death benefits you received from registered pension schemes.
  4. Add any reduction of employment income for pension provision through any relevant salary sacrifice arrangements made after 8 July 2015.
  5. Add any reduction of employment income for pension provision through any relevant flexible remuneration arrangements made after 8 July 2015.

Work out your adjusted income

For each tax year

  1. Start with your net income.
  2. Add the amounts of claims made for tax relief on pension savings where they were paid before tax relief was given (because your pension scheme wasn’t set up for automatic relief or someone else paid into your pension).
  3. Add pension savings made to your pension schemes where tax relief was given (because your employer took them out of your pay before deducting Income Tax).
  4. If you are a non-domicile individual (your permanent home is outside the UK), add any relief claimed on pension savings you made to overseas pension schemes.
  5. Add the amount of pension savings your employer made for you.
  6. Deduct the amount of any lump sum death benefits you received from registered pension schemes.

Work out your pension savings

You may receive annual pension savings statements from each of your pension schemes showing your savings for the year. If you haven’t received this information, you can ask your pension administrators to provide it.

For defined contribution schemes (also known as money purchase schemes), your pension savings are usually the amount of savings made by you or someone else on your behalf (including your employer) during the pension input period (the period over which you measure your pension contributions). You’ll need to obtain details of your pension savings from your scheme administrator.

To calculate the pension savings made for you by your employer, start with your total pension savings made during the pension input period and deduct the savings you (or someone else on your behalf) made during this period (excluding your employer).

To find out the amount your pension has increased for defined benefit schemes (like career average schemes), deduct the opening value from the closing value for the pension input period.

From the 2016 to 2017 tax year, the pension input period is 6 April to 5 April (the same as the tax year).

Work out the opening value

The opening value is the amount of pension benefits that have built up so far at the end of the previous pension input period.

  1. Start with your annual pension built up so far at the end of the previous pension input period.
  2. Multiply this amount by 16.
  3. Add any separate lump sum built up at the end of the previous pension input period.
  4. Increase this by the Consumer Price Index (CPI) for the previous September – this increased amount is your opening value.

Work out the closing value

The closing value is the amount of pension benefits that has built up so far at the end of the pension input period.

  1. Start with your annual pension built up so far at the end of the pension input period.
  2. Multiply this amount by 16.
  3. Add the value of any separate lump sum you would receive – this is your closing value.

Deduct the opening value from the closing value. If the difference is a:

  • negative amount, then your pension savings are nil for that period
  • positive amount, then this is the amount of your pension savings

Use this amount to work out your threshold income and your adjusted income.

Source: HMRC

Guidance: Northern Ireland Corporation Tax regime: draft guidance

Updated: The Northern Ireland Corporation Tax regime draft guidance has been updated with the procedures that will be put in place once a separate rate is set.

The Corporation Tax (Northern Ireland) Act 2015 allows for devolution of power to the Northern Ireland Assembly to set a Northern Ireland rate of Corporation Tax to apply to certain trading income.

The government will commence the Act and devolution of the power can be completed once a restored Northern Ireland Executive demonstrates its finances are on a sustainable footing.

Once the Act has been commenced, a separate rate can be set through a resolution agreed by the Northern Ireland Assembly, in advance of the tax year for which the rate is to apply.

HM Revenue and Customs draft guidance sets out how the Northern Ireland Corporation Tax legislation will operate once a separate rate is set. The text takes account of comments received during consultation and incorporates some minor changes made to the legislation in Finance (No 2) Act 2017.

The draft guidance may be refined further before the devolution of the Corporation Tax rate-setting power to the Northern Ireland Assembly.

Source: HMRC

Detailed guide: VAT: businesses that sell goods in the UK using online marketplaces

Updated: Updated with changes announced in the Autumn 2017 Budget for sellers that use online marketplaces.

Learn what you must do to meet your UK VAT responsibilities if you sell goods in the UK on an online marketplace and are either:

  • a UK seller selling goods already in the UK at the point of sale to UK consumers
  • an overseas seller, or their UK VAT representative, who either:
    • sells goods already in the UK at the point of sale to UK consumers
    • is based outside the EU and sells goods to a UK consumer, and then imports them into the UK
    • sells goods located in another EU member state to UK consumers

There are different VAT rules for overseas sellers based in the EU who sell goods in the UK, that aren’t in the UK at the point of sale.

Overseas sellers

HM Revenue and Customs (HMRC) define you as an overseas seller if you sell goods stored in the UK to UK consumers and don’t have a business establishment in the UK.

You’ll be established in the country where the functions of your business’s central administration take place.

To work out where that is you should consider where:

  • essential management decisions are made
  • your registered office is located
  • management meetings take place

You’re also an overseas seller if you’re based outside the EU and sell goods to a UK consumer, then import then into the UK.

Online marketplaces

HMRC define an online marketplace as a website (or any other means by which information is made available over the internet) that anyone (including the online marketplace operator) can use to offer goods for sale.

This applies even if the online marketplace:

  • isn’t established in the UK
  • sells its own goods over the internet

An online marketplace operator can be held liable:

  • for an online seller’s unpaid VAT
  • if an online seller doesn’t meet its VAT requirements

You operate an online marketplace if you control access to it, or its contents.

Find out more about your legal responsibilities if you’re an online marketplace operator.

VAT registration

You must register for VAT in the UK if you’re:

  • a UK seller selling goods as a business activity in the UK, and your business’s VAT taxable turnover is more than £85,000 a year
  • selling goods in the UK that are in another EU member state (known as ‘distance selling’) and your sales to UK consumers are more than £70,000 a year
  • an overseas seller selling goods as a business activity in the UK (there is no threshold)

Read Notice 700/1: should I be registered for VAT? if you need more information to help you decide if you should register for VAT.

After you’ve registered for VAT you’ll get a VAT registration number from HMRC. You should give it to every online marketplace where you offer goods for sale in the UK, so they can check it and display it on their website.

You should use the same business name that you used when you registered for VAT when you open a trading account on an online marketplace.

The online marketplace may remove you from their marketplace if you don’t, as they won’t be able to match your trading account name with the name on the EU Europa database when they verify your VAT registration number.

VAT requirements

Once you’re registered for VAT, you must:

  • charge VAT on your UK sales of standard-rated goods
  • account for, and pay that VAT to HMRC

You can find more information on how to account for the VAT you owe in VAT Notice 700/12: how to fill in and submit your VAT Return.

Failure to meet VAT requirements

HMRC is committed to helping you comply with VAT rules.

We’ll identify high risk sellers who aren’t meeting UK VAT requirements. This includes, but isn’t limited to, failing to:

  • register for VAT in the UK
  • supply accurate VAT returns for sales in the UK
  • pay the full liability arising from sales in the UK

HMRC will contact you to ask what action you intend to take and can register you for VAT if you don’t.

What we do after this will depend if you’re:

UK sellers who fail to meet VAT requirements

HMRC may impose a penalty on you.

HMRC can also contact the online marketplaces you trade through, to inform them that you’re not complying with the VAT rules. They may decide to remove you from their marketplace.

Overseas sellers who fail to meet VAT requirements

As well as the normal penalties HMRC can impose on you, they may also consider:

  • directing you to appoint a VAT representative established in the UK
  • asking you for a suitable security

If you still don’t comply, HMRC can contact the online marketplaces you trade through to inform them that you’re not complying with the VAT rules. They may decide to remove you from their marketplace.

Online marketplaces can also remove you from their marketplaces if:

  • they know that you must be registered for VAT and haven’t done so
  • you haven’t given them a valid VAT registration number for your business

HMRC can register you for VAT and impose a penalty if you’re an overseas seller with goods stored in another EU member state and you don’t register when your UK turnover exceeds £70,000 a year.

UK VAT representatives of overseas sellers

If you’re the UK VAT representative of an overseas seller failing to meet its UK VAT requirements HMRC can hold you jointly and severally liable for the VAT it owes from the date you become its representative.

You may also have to give a suitable security to HMRC.

Appeals

There are some differences to the general appeals guidance on what to do if you disagree with a tax decision.

UK sellers

You can appeal against:

  • having to register for VAT
  • an assessment for VAT

Overseas sellers

You can appeal against:

  • having to register for VAT
  • an assessment for VAT
  • having to pay a security

You can’t appeal against a direction to appoint a UK VAT representative.

Overseas sellers with goods stored in another EU member state

You can appeal against:

  • having to register for VAT
  • an assessment for VAT

You can’t appeal against a direction to appoint a UK VAT representative.

UK VAT representatives of overseas sellers

You can appeal against a requirement to provide a security.

You can’t appeal against being made jointly and severally liable for an overseas seller’s VAT obligations.

Get help

Find out more about online and distance selling for businesses or phone the VAT Helpline.

Source: HMRC

Official Statistics: Patent Box Reliefs Statistics

Updated: Update with statistics for 2014-15

The Patent Box enables companies to apply a lower rate of Corporation Tax to profits earned after 1 April 2013 from its patented inventions.

Statistics on the number of companies electing into the Patent Box, amounts of profits qualifying for the Patent Box and the cost to the Exchequer of providing that relief.

Source: HMRC

Form: HM Revenue and Customs: disclosure service

Updated: The tax, interest and penalty calculators have been updated to include the year 2017.

Use the online form service if you’re:

  • an individual
  • a nominated partner
  • a trustee of a trust
  • an officer of a company
  • an agent

You, your company or client will also need to:

You can also use the online form service if you don’t qualify for a current HMRC campaign, but haven’t declared the right amount of income or tax for one or more of the following:

  • Income Tax
  • Capital Gains Tax
  • National Insurance contributions
  • Corporation Tax

You’ll need to sign in to, or set up a Government Gateway account to use the service.

Tax, interest and penalty calculators

You can use one of the following calculators to help you work out the tax, interest and penalties you owe if your tax affairs are straightforward, and you’re only entitled to basic personal allowances:

Before you start

If you’re using an older browser (for example, Internet Explorer 8) you’ll need to update it or use a different one to use the calculators. Find out more about browsers.

Source: HMRC

Detailed guide: Worldwide Disclosure Facility: make a disclosure

Updated: The offer letter section of this guide has been updated.

Introduction

Over 100 countries have committed to exchange information on a multilateral basis under the Organisation for Economic Co-operation and Development Common Reporting Standard (CRS). The CRS dramatically increases international tax transparency.

On 31 December 2015, all HM Revenue and Customs (HMRC) offshore facilities closed. Up to that date, HMRC gave incentives to encourage people to come forward and clear up their tax affairs. That’s no longer the case, but before automatic exchange and new sanctions come into force, the Worldwide Disclosure Facility (WDF) will be the final chance to come forward before we use CRS data and toughen our approach to offshore non-compliance.

The facility opened on 5 September 2016. After 30 September 2018, new sanctions under Requirement to Correct will be introduced that reflect HMRC’s toughening approach. You can still make a disclosure after that date but those new terms will not be as good as those currently available.

Use this guidance to help you complete your disclosure. If you’re unsure about the accuracy and completeness, or any aspect of your disclosure, you must seek professional advice.

Who can use the facility

Anyone who wants to disclose a UK tax liability that relates wholly or partly to an offshore issue can use the facility. An offshore issue includes unpaid or omitted tax relating to:

  • income arising from a source in a territory outside the UK
  • assets situated or held in a territory outside the UK
  • activities carried on wholly or mainly in a territory outside the UK
  • anything having effect as if it were income, assets or activities of a kind described above

It also includes funds connected to unpaid or omitted UK tax not included above, that you’ve transferred to a territory outside the UK or are owned in a territory outside the UK.

If at any time HMRC knows or suspects that assets or funds included in your disclosure are wholly or partly made up of criminal property, we’ve discretion to refuse your application to participate.

We’ll refer all disclosures made by taxpayers currently under enquiry, including all disclosure of tax avoidance schemes arrangements to the investigating officer to decide whether we can accept them.

If you’ve made a settlement following an in-depth enquiry or disclosure before, HMRC will consider your new disclosure for further investigation and if it covers the same period, you may face a higher penalty.

If you’re unsure whether you meet the eligibility criteria for the facility, you must seek professional advice.

If you’re not resident in the UK, you can still make a disclosure if you meet the eligibility criteria above.

You’ve had a letter about your money or assets abroad

You’ll need to use this facility if you get a letter about your money or assets abroad, have checked your tax affairs, and find you need to make a disclosure.

Register for the facility

Notify using HMRC’s Digital Disclosure Service (DDS). You’ll need this information to notify and disclose:

  • name
  • address
  • National Insurance number
  • Unique Tax Reference
  • date of birth
  • the name, reference and contact details of any agent acting for you

Once you’ve notified us of your intention to make a disclosure, you’ll have 90 days to:

  • gather the information you need to fill in your disclosure
  • calculate the final liabilities including tax, duty, interest and penalties
  • fill in your disclosure, using the unique disclosure reference number (DRN) we give you when you notify

You must give any extra information in support of your disclosure that we ask for. We use this to check its accuracy and completeness.

The terms of the facility

These are:

  • you must be eligible
  • you must make a full disclosure of all previously undisclosed UK tax liabilities
  • you must calculate interest and penalties based on the existing legislation

If your disclosure is correct and complete and you fully co-operate by supplying any further information we ask for to check your disclosure, we’ll not seek to impose a higher penalty, except in specific circumstances. Also, we won’t publish details of your disclosure.

If you fail to make a complete or accurate disclosure or refuse to send in additional information, we may:

  • apply a higher penalty than we would if you’d provided the information voluntarily
  • open a civil or criminal investigation
  • publish your details on the HMRC website

You may still be liable to criminal prosecution.

When you make a disclosure, you’ll be invited to self-assess your behaviours. The number of years you should disclose will depend on the behaviour as the associated assessment periods are set out in statute.

The self-assessment of your behaviour is part of your disclosure and we won’t guarantee the terms of the facility for inaccurate disclosures. We may conduct a further investigation of an inaccurate disclosure either civilly or as part of a criminal investigation.

Criminal Investigation will be reserved for cases where HMRC needs to send a strong deterrent message or where the conduct involved is such that only a criminal sanction is appropriate.

HMRC reserves complete discretion to conduct a criminal investigation in any case and to carry out these investigations across a range of offences and in all the areas for which the Commissioners of HMRC have responsibility.

If you’re unsure about how to self-assess your behaviours or calculate the number of years to disclose, you must seek professional advice.

Advice for filling in your disclosure

You should use this guidance to help you fill in your disclosure. If you’re unsure about the accuracy and completeness, you must seek professional advice.

If you want to discuss a complex issue, for example legal interpretation you can, after first notifying HMRC and getting a DRN.

Facility and terms limits

To register for the facility you must be making a disclosure of an offshore issue but if you also need to disclose onshore issues, you must do that too. This doesn’t mean we’ll automatically charge the same penalty on onshore income or gains.

When you start the disclosure process, you’ll need to calculate what you owe for both offshore and onshore liabilities on a year by year basis depending on your behaviour.

Circumstances where a higher penalty may apply

HMRC will treat disclosures differently and we may charge a higher penalty when:

  • you’re already under enquiry by HMRC
  • your disclosure is connected to a previous inaccurate disclosure or settlement following an investigation
  • you don’t follow the existing legislation on calculating penalties

How to make a notification and disclosure to HMRC

Notify

You must tell HMRC of your intention to make a disclosure. Do this as soon as you become aware that you owe tax on undeclared offshore income or gains.

The following customers can make a disclosure:

  • an individual about your own tax affairs or your company’s tax affairs, this includes director or company secretary
  • about your trust or estate
  • about a limited liability partnership
  • on behalf of someone else, for example, if you’re a tax adviser, a personal representative or an executor of an estate

You can’t include details for more than one person or company on a disclosure. For example, if a husband and wife both have undisclosed income they must both complete separate disclosures, each showing the share of the income they need to disclose. We need a separate notification for each person. Similarly, if we need a disclosure for a company and for a director, this should be on two separate disclosures.

Individuals and companies

Individuals and companies can notify by completing the DDS form. HMRC will write to you to tell you your unique Disclosure Reference Number (DRN). Use this whenever you contact them about the Let Property Campaign. You’ll also be given a Payment Reference Number (PRN) to use when paying what you owe.

Agents

Agents should use the digital disclosure service to notify HMRC of your clients’ disclosure. We’ll then send you out a disclosure reference and a payment reference.

Unless you have all details to hand, you don’t need to give any details of the undisclosed income or the tax you think you owe at the time you notify.

If after you’ve notified you no longer need to make a disclosure, you must tell HMRC by calling 0300 322 7012. If you don’t, we’ll take action to secure a disclosure.

Disclosure

You must make your disclosure within 90 days after getting the notification acknowledgement quoting your DRN.

You can make a disclosure:

A requirement of the terms of the facility includes payment of the full disclosure amount at the time of submission. You’ll be given details of how to pay when completing your disclosure. If you can’t pay what you owe immediately you need to agree paying arrangements with HMRC by contacting 0300 322 7012 before submitting your disclosure.

Completing your disclosure

If you tell us that your disclosure includes offshore liabilities, you’ll need to complete the following on the form:

  • whether your disclosure was prompted by a letter from HMRC
  • your DRN
  • in what capacity you’re completing your disclosure
  • the designatory details of who the disclosure relates to
  • your contact details if you’re completing the disclosure for someone else

You may need to register for Self Assessment or complete tax returns for future years not included in this disclosure.

You’ll be asked to make a commitment that you:

  • understand you’re expected to make a full disclosure and you intend to do so
  • acknowledge that a false disclosure could result in a prosecution

You can make a disclosure for all tax years up to and including 2014 to 2015. But if we’ve sent you a tax return for that year or any tax year from 2012 to 2013 which is still outstanding, you must complete the return and you mustn’t include these tax years on this disclosure form.

You’ll need to self-assess your behaviour which will indicate the number of years you need to disclose.

Select all of the options that apply to you:

  • you’ve failed to notify HMRC about a tax liability but this was not deliberate and you have a reasonable excuse
  • you’ve submitted an inaccurate return despite taking reasonable care
  • you’ve not filed a return but have a reasonable excuse
  • you’ve submitted an inaccurate return because you didn’t take enough care
  • you’ve failed to notify HMRC of a tax liability but this wasn’t deliberate and you don’t have a reasonable excuse
  • you’ve deliberately failed to notify HMRC of a tax liability
  • you’ve deliberately submitted an inaccurate tax return or deliberately withheld information by failing to submit a return

If you’re unsure which behaviour option applies to you, you must seek professional advice. The self-assessment of behaviour is an integral part of your disclosure and an incomplete or incorrect self-assessment may lead to a civil intervention or criminal prosecution

Based on your selection, you’ll be presented with the years this disclosure relates to and you must select all that apply.

You’ll then need to calculate the total income and gains that you’re disclosing across all heads of duty. Enter the combined total under income or gains on the form. If you’re unsure whether a source of income or gain is taxable you must seek professional advice.

If your records aren’t complete, estimate as accurately as you can any income or expenses that you don’t hold a record of. Keep copies of your calculations as we may ask to see how you’ve worked these out.

You must give a description of the income or gain. Enter the largest or most frequently occurring source if there are multiple entries.

You’ll need to calculate the total tax and duty due for each tax year selected. We can’t give individual advice on calculating how much you owe.

The combined total must be entered under ‘Tax’ on the form. If you’re unsure how to calculate your income and liabilities, you must seek professional advice.

You’ll need to calculate interest on all unpaid tax liabilities included in your disclosure. Interest is charged on the full amount of tax you owe in accordance with UK law. Interest runs from the date when the tax should have been paid until the date of payment. Use the current and previous interest rates that apply to late payment of tax.

Enter the combined total in your disclosure. If you’re unsure how to calculate your interest you must seek professional advice.

You may find the calculator we explain on the DDS start page helpful.

You must calculate the penalty on all unpaid tax and duty liabilities included in your disclosure.

Offshore penalties

Income Tax and Capital Gains Tax for offshore matters

The penalties for Income Tax and Capital Gains Tax for offshore matters factsheet tells you about the higher penalties HMRC may charge.

In specific circumstances it may not be appropriate to allow you the full reductions for disclosure. For example if you’ve taken a significant period to correct your non-compliance, or you could have previously made a disclosure through one of HMRC’s offshore facilities, you cannot expect HMRC to agree a full reduction for disclosure. In such cases it’s unlikely that HMRC will reduce your penalty by more than 10 percentage points above the minimum of the statutory range. For this purpose HMRC would normally consider a ‘significant period’ to be over three years, or less where the overall disclosure covers a longer period.

You’ll need to check the classification of territories for the purposes of offshore penalties. You should consider any territory not classified in category 1 or 3 under category 2.

Enter each calculated penalty rate for each year of disclosure and the penalty due per year will be calculated automatically following the entry of the liability under tax on the form.

When you’ve calculated your offshore liabilities you need to calculate any onshore liabilities for each year disclosed. Calculate your penalty for each year and your behaviour using the guidance for:

You must tell us if you’ve reduced the amount of your disclosure because of consideration and interpretation of the law. Enter all circumstances that apply, the response is an integral part of your disclosure and an inaccurate or incorrect response may lead to a civil intervention or criminal prosecution.

Choose from the following:

You must seek professional advice if you’re unsure whether these apply to you.

If none of the above apply but you’ve made an adjustment to the amount of the liabilities in your disclosure, you can record the details at ‘other issues’ on the form.

You must enter the maximum value of assets you hold outside the UK at any point over the last 5 years. Calculate this from the date of your disclosure. This may include:

  • cash
  • bank and other savings accounts
  • other accounts such as stockbroker or solicitors etc
  • trusts
  • debts owed to you
  • other bond deposits and loans
  • government securities
  • stocks and shares
  • life assurance policies and pensions
  • land and buildings including holiday timeshare etc
  • vehicles
  • caravans
  • boats
  • art and antiques
  • gold and silver articles
  • jewellery
  • collections for investment

All valuations must be in pounds sterling. You must convert any non-pounds sterling assets using these exchange rates.

Enter all asset valuations that apply, the valuation is an integral part of your disclosure. If you’re unsure how to value your assets, speak to your professional adviser. An inaccurate or incorrect valuation may lead to a civil intervention or criminal prosecution.

Choose the main jurisdiction in which your offshore assets were located or income arose from, this will be a 3 digit code. You can enter a maximum of 3 jurisdictions if you’ve multiple sources of income or assets.

Complex issues and pre-disclosure agreement

In exceptional circumstances, so that you can seek clarification of complex issues before submitting your disclosure, we’ve updated the non-statutory clearance process. We’ve introduced a new clearance route that you can only use if you’ve already registered to make a disclosure of offshore liabilities through the DDS.

You’ll be allowed 90 days from the time that your application for clarification is finalised to submit your final disclosure.

Other liabilities (not included in the disclosure)

If you need to disclose VAT liabilities make sure you tick the box for this on your disclosure.

You need to check whether your entitlement to tax credits is affected by making a disclosure. If you need to make changes to your tax credit claim contact HMRC on 0300 322 7012.

Some inheritance tax disclosures can be for more than 20 years. Liabilities for more than 20 years ago can’t be disclosed using the DDS. If you’ve liabilities for a period longer than 20 years ago, disclose them by contacting HMRC on 0300 322 7012.

Offer letter

It’s a condition of using this facility that you make an offer for the full amount of taxes, duties, interest and penalties you owe.

You’ll get an acknowledgement from HMRC within 15 days of us getting your completed disclosure and we’ll aim to tell you of the intended course of action within 90 days of the acknowledgement.

It may be necessary for HMRC to ask you to give appropriate evidence to ensure that your disclosure is accurate and complete. Should you fail to co-operate this may prejudice our acceptance of your offer and may also result in the terms not applying.

We expect the majority of disclosures to be accepted without an in depth enquiry. But, if we can’t accept your disclosure we’ll open an enquiry or resume any existing enquiry and write to you for further information or explanations as provided for in existing legislation.

Payment methods

When you notify HMRC of your intention to disclose, you’ll be sent unique disclosure and payment reference numbers (DRN and PRN). You must use these in all further correspondence relating to your disclosure.

You’ll be given details of how to pay when completing your disclosure. If you can’t pay what you owe immediately, you’ll need to contact HMRC on 0300 322 7012 to agree paying arrangements before submitting your disclosure.

You must make full payment in accordance with your disclosure on the same date that your disclosure is submitted.

If you can’t fulfil your obligation by making a full payment in accordance with your disclosure or on the ‘time to pay’ terms agreed with HMRC, we may take action to recover what you owe.

Further information and declaration

We’ll ask you for details of how you became aware of making a disclosure and ask you to add any media code you were asked to quote if applicable, before confirming that the disclosure is correct and complete. If you’re unsure about whether your disclosure is correct and complete you must seek professional advice.

We’ll also ask some additional questions as to the circumstances that led you to making this disclosure.

We’ll send you an email when you notify online and agree to an electronic acknowledgement.

Source: HMRC