Clients with Undeclared Earnings
Undeclared Earnings - Making a Voluntary Disclosure to HMRC
Undeclared earnings can be a common issue in many cases involving self employed Claimants.
Although there is no obligation under legal privilege to make a voluntary disclosure to HMRC, depending on the circumstances of the case, there could be merit in exploring the potential of the Claimant making a voluntary disclosure.
This could allow the Claimant to pursue a claim for loss of net income based on their ‘true’ rather than ‘declared’ level of profits.
However, there are a number of important considerations for the Claimant, including but not limited to:
- Evidence is key – is there evidence to support the undeclared earnings?
- Cost – a tax liability to pay, potential penalties and professional fees.
- A willingness to make a disclosure from a moral position, rather than purely to assist the claim.
- Do the benefits to the case outweigh the cost of making the disclosure?
If you have a case involving undeclared earnings, we would be happy to discuss the Claimant’s circumstances and potential avenues with you.
At Forths we have a specialist Tax Investigations and Disclosures Team who assist individuals in bringing their tax affairs up to date with HMRC. Working in conjunction with our Forensic Team, we are able to provide a service to Claimants whose circumstances and case merits making a voluntary disclosure.
To discuss potential case, contact liamb@forthsonline.co.uk