HMRC offers the opportunity to disclose unpaid taxes or under-reported income via their online disclosure services, helping you bring your tax affairs up to date and ensuring compliance with UK law. If you do not disclose any unpaid taxes or under-reported income, you may be investigated by HMRC.
Voluntary disclosures to HMRC can be made for a variety of income sources, including offshore income, rental income, and other undeclared earnings, such as self-employment income. HMRC offers certain schemes which allow you to make late tax repayments if you are in financial distress, including the Time to Pay service.
Key programs like the Worldwide Disclosure Facility for offshore income and the Let Property Campaign for rental income make this process straightforward.
At RMT, we offer expert advice on the HMRC voluntary disclosure service and if there is actually value in making a voluntary disclosure to HMRC. Our team of specialist tax accountants in Newcastle upon Tyne can support you if you are subject to an HMRC tax investigation or if you need support with any voluntary disclosures of unpaid tax or under-reported income.
Types of HMRC Disclosures – Prompted vs. Unprompted
There are two primary types of HMRC disclosures: prompted and unprompted. Understanding the difference is crucial to deciding the best approach for your case.
- Prompted Disclosure occurs when HMRC initiates contact with you regarding your tax affairs, often through a “nudge” letter or formal enquiry.
- Unprompted Disclosure is when you voluntarily come forward to declare unpaid taxes or under-reported income, before HMRC takes any action. Unprompted disclosures typically result in lower penalty rates, as they show a proactive approach to compliance.
As tax laws become more complex and HMRC’s scrutiny increases, it’s essential to ensure that you are fully compliant with this legislation. Seeking expert advice from our experienced tax advisors can help navigate the voluntary disclosure process with ease and ensure that steps are taken to avoid unnecessary penalties and avoid costly mistakes.
HMRC Offshore Income & Gains Disclosure – Worldwide Disclosure Facility
HMRC has a strong focus on offshore income and gains, and they have introduced specific programs to tackle undeclared offshore income and gains. The exchange of information between countries outside of the UK and HMRC continues to increase. This includes income from foreign investments, savings, or businesses that have not been declared to HMRC. There are offshore disclosure facilities you can use to declare your income on a UK tax return.
The Requirement to Correct (RTC) regime was introduced by HMRC to ensure that UK residents with offshore income and assets bring their tax affairs into compliance. Under RTC, individuals with undeclared offshore income or assets were invited to correct their tax position by 30 September 2018. While the initial deadline for RTC has passed, it remains essential to ensure all offshore income and assets are properly declared.
Failure to disclose offshore income and gains can lead to severe consequences, including significant penalties, interest charges, and even criminal prosecution. HMRC has access to international financial data and has made it clear that they expect full disclosure.
If you have any undeclared offshore income, now is the time to act and avoid the potential serious consequences of non-compliance with HMRC.
Let Property Campaign – Disclose Rental Income to HMRC
The Let Property Campaign is a disclosure initiative aimed at landlords who have failed to declare rental income.
Who Can Take Part?
The Let Property Campaign is open to all UK landlords, including those with long-term or short-term lets (e.g., holiday lets). Whether you have one property or several, if you haven’t declared rental income to HMRC, this campaign provides an opportunity to correct your tax position.
Penalties for Non-Disclosure
One of the key advantages of the Let Property Campaign is the reduction in penalties for those who voluntarily come forward. You will likely face lower penalties than if HMRC discovers the issue during an investigation. By participating in the campaign, you are taking a positive step to correct your tax affairs and reduce the impact on your finances.
Expert Tax Advisors for HMRC
Disclosing unpaid taxes—whether for offshore income, rental income, or other sources—requires careful planning and understanding of the relevant tax laws. Expert tax advisors are essential in navigating the disclosure process and ensuring full compliance with HMRC.
- Tailored Guidance: Every individual’s tax situation is unique, regardless of whether you are dealing with personal tax or business tax. A tax advisor will provide personalised advice that suits your specific circumstances.
- Avoiding Legal and Financial Consequences: Mistakes in disclosures can lead to severe penalties. Professional advisors help mitigate this risk.
- Minimise Penalties: Tax advisors are familiar with the nuances of HMRC’s disclosure process, and therefore can negotiate with HMRC to minimise the penalties charge.
- Avoid Common Mistakes: The risk of error is high when completing these disclosures. Experts ensure that no income is overlooked, and all forms are filled in correctly and in line with HMRCs expectations.
- Peace of Mind: With an expert tax advisor on your side, you can be assured that your disclosure is compliant and that you’ve followed the correct procedures to reduce any potential penalties.
If you have income or gains that have not been declared to HMRC, the best course of action is to make a voluntary disclosure. Whether you’re dealing with offshore income, rental income, or other undeclared income or gains, engaging an expert tax advisor is crucial to ensuring your disclosure is compliant and reduces penalties.
Start the Process Today – Contact Our Experienced Tax Advisors
Don’t risk higher penalties or legal complications. If you are looking to make a voluntary disclosure to HMRC about your tax affairs, there is a time limit before you will be penalised. Speak to one of our expert tax advisors today to begin the process of bringing your tax affairs up to date and avoid time limit-related penalties. Our team of tax accountants in Newcastle upon Tyne is here to guide you every step of the way.
Frequently Asked Questions (FAQs)
What is HMRC voluntary disclosure?
HMRC voluntary disclosure is when an individual comes forward to declare unpaid taxes or under-reported income to HMRC before being prompted to do so. This proactive approach can reduce the risk of being investigated by HMRC, help reduce penalties and avoid legal complications.
What is the Let Property Campaign?
The Let Property Campaign is an initiative from HMRC that allows landlords to disclose any undeclared rental income. By participating, landlords can benefit from reduced penalties.
Can offshore income be disclosed to HMRC?
Yes, HMRC has specific programs for offshore income disclosure, such as the Worldwide Disclosure Facility (WDF). It’s crucial to declare any previously undeclared offshore income to mitigate significant penalties and interest charges, and prevent being investigated by HMRC.
Key Contacts

Chris Moir
Associate Director & Head of Personal Tax
0191 256 9500

Jenna Ideson
Personal Tax Manager