To make a disclosure you should:
- tell HMRC that you want to make a disclosure (notify)
- tell us about all income, gains, tax and duties you’ve not told us about before (disclose)
- make a formal offer.
- pay what you owe.
- help us as much as you can if we ask you for more information.
What happens if you owe tax to HMRC?
If you have not paid the right amount at the end of the tax year, HMRC will send you a P800 or a Simple Assessment tax calculation. Your P800 or Simple Assessment will tell you how to get a refund or pay tax you owe. Your bill will be adjusted automatically if you’ve underpaid or overpaid tax.
When to tell HMRC about a tax bill?
It’s very important that you tell HMRC about changes to your income or company benefits as soon as possible so that you don’t end up with a large tax bill at the end of the tax year. If you owe less than £3,000 you will usually be able to pay back the amount through your tax code.
Why does HMRC not always recover all taxes due?
Because HMRC do not always recover all taxes due through tax codes. There are various reasons why they do this. There are limits to the recovery through the tax code system. I hate tax code recovery.
What to do if HMRC says you owe money?
I.P., Gloucester. From when HMRC first started issuing demands for underpaid tax, it has said it will allow the debt to be paid monthly and consistently claims callers will receive a sympathetic response. Yet time and time again Money Mail gets copies of letters showing it is demanding a single lump sum. This should not be happening!
When does HMRC have to notify the taxpayer of an underpayment?
This means, for example, that for most P800 notices issued for 2016/17, HMRC has until 5 April 2018 to notify the taxpayer of the underpayment. Only after this date could ESCA19 apply. Exceptionally, ESC A19 may also apply if HMRC has allowed arrears of tax to build up over two or more tax years.
