How do I make a voluntary disclosure to HMRC?

A voluntary disclosure is your way of telling HMRC about undeclared tax before it finds out through its own data-matching or an enquiry. The process is broadly the same whether the issue is rental income, offshore assets, capital gains or another source: identify the scope, calculate the figures, then submit through the correct channel.

Choosing the right facility matters. The Let Property Campaign suits rental income, the Worldwide Disclosure Facility suits offshore matters, and general disclosures cover everything else through the same Digital Disclosure Service portal.

There is no single disclosure statute; voluntary disclosure sits alongside HMRC's assessment powers under the Taxes Management Act 1970. Registering signals your intention to disclose and typically gives you a defined window, often around 90 days, to work out and submit the full figures.

For each affected year, you must classify the behaviour that caused the error, since this drives both the assessment time limit and the penalty percentage under Schedule 24 Finance Act 2007. Coming forward before HMRC approaches you about the specific matter keeps the disclosure unprompted, which sits at the lower end of each penalty range.

Once submitted, HMRC reviews the disclosure and can ask further questions or, in some cases, open a formal enquiry if it disagrees with the figures or classification provided.

Voluntary disclosure through the Digital Disclosure Service is generally used for personal tax matters. Corporation tax errors are usually corrected by amending the company tax return directly or contacting HMRC separately, rather than through this personal disclosure route.

Where personal and company matters are connected, such as dividends drawn from undeclared company profit, both sides may need correcting together, so take advice before disclosing only one part.

You will pay the underpaid tax, interest calculated by reference to the Bank of England base rate, and a penalty within the range appropriate to your behaviour and prompting category for each year.

Professional help calculating figures accurately across multiple years, and choosing the right classification, is usually proportionate given the penalty difference between getting it right and having HMRC challenge it later. See /fees for our services and included tax investigation insurance.

Do not register before you can realistically gather the figures within HMRC's deadline; missing the window can undermine your unprompted status.

Avoid using the wrong facility, such as a general disclosure for an offshore matter that should go through the Worldwide Disclosure Facility, since this can lead to an incorrect penalty calculation.

Do not leave out years because records are incomplete. Reasonable, clearly flagged estimates are treated far better than silent omission that HMRC later uncovers.