The list of financial activities you may need to disclose to the government in your taxes have grown in the past few years. You must ensure that you stay on top of your books, or else you may face penalties if you accidentally leave some form of income out of your taxes and HMRC discover this. However, if you discover you have made a genuine error in declaring your taxes to the government and wish to voluntarily disclose this extra income in a reasonable timeframe, you will not be penalized. For the majority of citizens, the list of taxes that must be disclosed is quite simple; income taxes, corporate taxes, taxes on capital gains, and contributions to National Insurance. If you find the burden of taxes slowly becoming heavier, you may be interested in hiring a specialist accountant, to see what opportunities for tax relief are available to you.
There are several steps to disclosing new taxes or income to HMRC. First, you must notify them that you wish to make a disclosure. After this, you must inform them about all income and other revenue that you have not previously disclosed to them in your taxes. Once you have done this, you must formally make an offer to HMRC to pay your overdue taxes, and then you need to follow through with this schedule and pay whatever taxes you owe to avoid facing penalties. If HMRC ask any follow-up questions during your disclosure, it is in your best interest to answer them honestly and fully.
It is worth nothing that if you realise you have any undisclosed taxes, it is far better to immediately disclose them to HMRC, or ask your accountant to do so, than to wait to be contacted by them. If you choose not to and they discover this, you may be targeted for tax evasion. Our professional team of tax specialists can assist you in the eventuality of a tax investigation, please contact us to find out more.