How to use the Worldwide Disclosure Facility


Introduction

The Worldwide Disclosure Facility (WDF) provides an opportunity for taxpayers who have undisclosed income, to come forward to HMRC to get their tax affairs up to date on the best possible terms.

As countries are increasingly sharing data with one and other, it is becoming more likely that HMRC will eventually discover any undisclosed income. It is best to come forward on an unprompted basis than be caught by HMRC on a prompted basis, as making an unprompted disclosure will lead to lower penalties.

If you have received a letter from HMRC confirming that they believe you have undisclosed income, you can call HMRC to request that they share the data they hold on you, to ensure that your records are aligned with HMRCs, prior to making the disclosure.

How do you make the disclosure?

How are penalties and interest calculated?

Penalties range from 0% to 200% and depend on the following factors:

1. The tax year that the undisclosed income relates to e.g. penalties relating to pre 16/17 tax year are considerably higher;
2. Whether the income is onshore or offshore;
3. The nature of the error e.g. careless or deliberate or deliberate and concealed;
4. The quality of the disclosure e.g. sharing data.

You can find further information on how penalties are calculated here.

Interest is calculated from the date the tax should have been paid which generally is 31 January following the end of the tax year.

How can GTC help?

GTC can review your historic UK tax affairs to determine whether you have incomes that need to be declared to HMRC.

We can represent you enabling us to complete the disclosure on your behalf. We can negotiate a settlement with HMRC including a request to reduce penalties based on the quality of the disclosure.

Our overall aim is to bring your UK tax affairs up to date with HMRC on the best possible terms.

Become a GTC client

Book a free discovery call with our team. We will collect background information to develop a greater understanding of the necessary steps to take to bring your affairs up to date.


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