Tax disclosure accountant London
Tax Disclosure support for unpaid tax, incorrect returns and earlier-year corrections.
Tax Accountant London helps individuals, directors, companies, self-employed clients and businesses make structured HMRC tax disclosures where income, gains, tax charges, company profits, National Insurance or previous tax returns were incomplete, incorrect or not submitted.
HMRC will want to understand what went wrong, which years are affected, how the tax has been calculated, whether interest is due, what behaviour applies and whether the disclosure is full, accurate and supported by records.
We review whether the matter needs amendment, voluntary disclosure, formal disclosure or HMRC response.
Tax, interest, affected years, evidence and supporting schedules are prepared before submission.
Reasonable care, careless, deliberate, prompted and unprompted disclosure positions are considered.
HMRC tax disclosure support
A tax disclosure corrects an earlier tax position before or after HMRC contact.
A tax disclosure may be needed where income was not reported, gains were omitted, a tax return was incorrect, company profits were understated, National Insurance was missed, or HMRC has information that does not match the tax position previously reported.
The disclosure should explain the facts, calculate the tax due, include interest, address penalties and provide enough evidence for HMRC to understand and settle the matter. The aim is to correct the tax position properly, not to send HMRC unsupported figures.
Who needs tax disclosure advice
Disclosure support for individuals, directors, companies, self-employed clients and businesses.
A disclosure is usually needed where tax has been underpaid, HMRC has not been told about a taxable source, or a previous return does not reflect the correct position.
Individuals with undeclared income
Income from work, investments, casual earnings, online activity, dividends, savings or other taxable sources not reported correctly.
Self-employed clients
Trading income, cash takings, side income, expenses, basis periods, losses or National Insurance issues needing correction.
Company directors
Dividend errors, director loan account issues, benefits, company payments, personal expenses and incorrect extraction treatment.
Companies and businesses
Corporation Tax errors, omitted income, overstated expenses, accounting adjustments, payroll-related tax and earlier-year corrections.
Tax disclosure services
Choose the disclosure route by tax type, timing, behaviour and whether HMRC has contacted you.
The right route depends on what went wrong. A return amendment, voluntary disclosure, prompted disclosure, company correction or disclosure report may each be appropriate in different circumstances.
HMRC disclosure route review
The first question is whether this is an amendment, disclosure or investigation response.
Not every correction needs the same route. Some returns may still be within amendment time limits. Some issues need a formal disclosure because several years are involved. Some cases become prompted disclosures because HMRC has already contacted the taxpayer.
Where HMRC has not contacted you about the issue, an early and complete disclosure may help reduce penalties.
Where HMRC has contacted you, the disclosure is usually prompted and penalty exposure may be different.
If the return is still within time for amendment, the correction route may be different from a historic disclosure.
Where HMRC was not told about a tax liability at all, failure to notify rules and penalties may need review.
Where a return was filed but incorrect, the behaviour and disclosure quality position should be considered.
Company disclosures may involve accounts, CT600 returns, director transactions, payroll and company record review.
Tax disclosure calculations
HMRC needs figures that can be traced back to records.
A disclosure calculation should normally be prepared year by year. It should show the income, gains, deductions, reliefs, tax due, tax already paid, interest and any penalty position. Unsupported estimates can cause further HMRC questions.
Income, gains, tax deducted, allowable costs, losses and reliefs should be analysed by tax year.
PAYE, withholding tax, payments on account, Corporation Tax paid and prior payments should be checked.
Interest is normally calculated from the original due date to the expected settlement or payment date.
Bank statements, invoices, statements, accounts, contracts and working papers should support the figures submitted.
What a general tax disclosure can cover
Disclosure can apply to several taxes, but the route must match the tax and facts.
The Digital Disclosure Service may be suitable for certain unpaid tax disclosures, but not every tax issue belongs in the same service. VAT, specialist campaigns and offshore-only issues may need separate handling.
Unreported income, self-employment profits, investment income, benefits, savings income and other taxable sources.
Unreported gains, disposal proceeds, incorrect base cost, missed losses, relief errors and historic CGT omissions.
Company income, overstated expenses, incorrect accounting treatment, director transactions and CT600 errors.
Class 2, Class 4, employer-related or other National Insurance issues linked to income or business reporting.
Some disclosures may involve Annual Tax on Enveloped Dwellings or connected tax charges depending on the facts.
Historic years need careful review of assessing limits, behaviour, interest and penalty exposure.
Penalty behaviour and disclosure quality
The quality of disclosure can affect the final penalty position.
HMRC considers whether the disclosure is prompted or unprompted, whether the behaviour was reasonable, careless or deliberate, and the quality of cooperation. A strong disclosure should tell HMRC what happened, help quantify the tax and give access to relevant records.
Explaining what went wrong, which years are affected and how the disclosure has been prepared.
Assisting HMRC with calculations, clarifications, questions and reasonable follow-up information.
Providing relevant records, schedules, explanations and evidence needed to support the disclosure.
Records, advice, personal circumstances, systems and actions taken to correct the issue can all matter.
Common tax disclosure situations
Tax disclosures often arise from small omissions that became bigger over several years.
Many taxpayers delay because they are unsure whether the issue is serious. The better approach is to review the tax exposure, identify the correct route and disclose before the position becomes harder to manage.
Side income, cash receipts, freelance income, online income or sole trader profits not included on tax returns.
Private costs, unsupported expenses, incorrect mileage, home office claims or reliefs claimed without full evidence.
Investment gains, asset disposals, share sales, crypto gains or incorrect CGT calculations needing correction.
Dividends without paperwork, overdrawn director loans, personal costs through the company or salary/dividend confusion.
Omitted sales, overstated costs, incorrect accounting entries, related-party transactions or CT600 errors.
Where HMRC has made contact, the disclosure should be coordinated with the letter, deadline and information requested.
HMRC disclosure submission and settlement
The disclosure should be complete enough for HMRC to understand and settle the case.
A disclosure normally needs a clear narrative, calculations, supporting documents and a proposed settlement position. Where HMRC asks follow-up questions, answers should remain consistent with the records and behaviour explanation.
We explain what happened, when it happened, how it was identified and why the correction is being made.
We prepare year-by-year computations, interest schedules and penalty analysis where relevant.
We assist with HMRC questions, clarification requests, revised figures and settlement correspondence.
We review HMRC’s acceptance, settlement calculation, penalty position, payment instructions and future compliance steps.
Documents needed for tax disclosure
The disclosure should be built from records, not guesses.
Tax returns, HMRC notices, prior calculations, UTR, Government Gateway records and tax payment history.
Bank statements, invoices, dividend vouchers, accounts, contracts, investment reports and supporting documents.
Income, gains, deductions, reliefs, tax deducted, tax already paid and explanations for each affected year.
How the error happened, when it was identified, who prepared earlier returns and what steps have been taken.
Tax disclosure process
A structured route from issue review to HMRC settlement.
We identify the tax, years, route, HMRC contact status, records and possible behaviour position.
We prepare year-by-year tax, interest, supporting schedules and evidence-backed calculations.
We prepare the narrative, computations, penalty review and submission material.
We assist with HMRC questions, settlement figures, payment position and future compliance steps.
Tax disclosure fees
Fees depend on tax years, records, behaviour risk and disclosure route.
We quote before work starts. A single-year correction is different from a multi-year disclosure, company correction, prompted HMRC case, penalty dispute or complex settlement calculation.
For reviewing the issue, likely route, records needed and immediate next steps.
For preparing disclosure calculations, narrative, interest and penalty position for straightforward cases.
For company, multi-year, prompted, behaviour-sensitive or HMRC correspondence cases.
Tax Disclosure FAQs
Common questions about HMRC tax disclosures, unpaid tax, penalties and settlement.
What is a tax disclosure to HMRC?
A tax disclosure is a formal correction where tax has not been reported or paid correctly. It normally explains what happened, calculates the tax and interest, addresses penalties and provides supporting records.
When should I make a tax disclosure?
You should consider a disclosure where income, gains, company profits, tax charges or previous returns were incorrect and HMRC has not been fully told about the tax due.
What is the Digital Disclosure Service?
The Digital Disclosure Service is an HMRC route used for certain disclosures of unpaid tax, including Income Tax, Capital Gains Tax, Corporation Tax, National Insurance and some other taxes. VAT errors are not dealt with through this route.
Is it better to disclose before HMRC contacts me?
In many cases, an unprompted disclosure can lead to a better penalty position than waiting until HMRC contacts you. The facts, behaviour and tax involved should be reviewed first.
What if HMRC has already written to me?
If HMRC has already contacted you, the disclosure may be treated as prompted. The response should be coordinated with the HMRC letter, deadline, records requested and possible penalty position.
How many years do I need to disclose?
The number of years depends on the tax issue, behaviour, whether returns were filed, whether HMRC was notified and the statutory time limits. This should be reviewed before figures are submitted.
Will HMRC charge penalties?
HMRC may charge penalties depending on the behaviour, tax lost, timing of the disclosure and quality of cooperation. A good disclosure should address telling, helping and giving access to records.
Can penalties be reduced?
Penalties may be reduced depending on the type of disclosure, behaviour, timing, cooperation and quality of information provided. Evidence of reasonable care can also be important.
Do I need records before making a disclosure?
Yes. The disclosure should be supported by records wherever possible. If records are missing, the calculation method and assumptions should be explained carefully.
Can you deal with HMRC on my behalf?
Once authorised and engaged, we can assist with the disclosure review, calculations, narrative, penalty position, HMRC correspondence and settlement within the agreed scope.