Voluntary tax disclosures

The hidden economy: Ghosts and moonlighters

It has long been known that HM Revenue & Customs (HMRC) has tried all sorts of methods to detect individuals who are in paid employment under PAYE and do another job from which the income is undeclared (moonlighters).

The hidden economy loses the Exchequer upwards of £3 billion a year and a lot of this is down to undeclared self-employment (ghosts).

At Myers Clark we have had many years of experience in dealing with situations where such individuals have been found out and in such cases the penalties can be high, even with full co-operation and disclosure. There is also an increased risk of criminal prosecution in certain circumstances.

There is no doubt that a Voluntary Disclosure of irregularities can result in much reduced penalties and a fairer settlement may be achieved (compared to discovery by the authorities) and will usually be based on our report, prepared with your co-operation, to a timetable agreed with HMRC.

We will also be able to set up your business in the most tax efficient way for the future so that you can lead a normal life and carry out your plans without the worry that you will be caught, which could lead you to losing everything to the taxman!

To arrange a free and completely confidential meeting, call us now on 01923 224411’.

Offshore tax investigations

  • The New Disclosure Opportunity (NDO) has now closed.
  • HMRC continues to target holders of offshore accounts using information supplied by banks.
  • 308 banks have started to provide information to HMRC.
  • HMRC states that taxpayers who did not come forward under NDO may face penalties of up to 100% of the tax owed and some may face prosecution.
  • HMRC advises taxpayers who did not disclose under NDO that, “it’s still well worth contacting HMRC”.
  • Moving funds to Liechtenstein may offer a second chance for those who did not disclose under NDO to escape prosecution, and also to legitimately limit the tax payable in cases where tax arrears go back to before 6 April 1999.

On 7 January 2010 HMRC issued the following statement:

“Now the NDO is closed, HMRC is beginning the job of using the data we have obtained from banks to identify people who have not made disclosures despite having hidden their money offshore. We are starting our investigations and penalties can be up to 100% of the tax not paid. But it’s very important to remember that, when someone comes forward voluntarily, the penalty is always lower than when we catch the evader. This means it’s still well worth contacting HMRC if you have undisclosed offshore accounts.”