New Disclosure Opportunity (NDO)

HMRC have announced that they are allowing taxpayers a ‘New Disclosure Opportunity’ (NDO). Which follows on from HMRC’s ‘Offshore Disclosure Facility’ (ODF) in 2007.

This enables taxpayers to ‘come clean’ and disclose any untaxed offshore income or gains to HMRC in exchange for a more favourable penalty rate.

In order to qualify for the reduced penalty rate of 10% individuals must notify HMRC of their intention to make a disclosure by 30th November 2009, and subsequently make a complete and accurate disclosure by 31st January 2010 (by paper) or 12th March 2010 (electronically).

Dave Hartnett, HMRC Permanent Secretary for Tax has said that “this will be the last opportunity of its kind.” HMRC have detailed on their website that “Once this disclosure window closes on 12 March 2010, those taxpayers who have not come forward but are found to have unpaid tax liabilities will face penalties of at least 30% rising to 100% of the tax evaded. They also run a risk of criminal prosecution”.

It is therefore advisable for anyone who falls under these arrangements to take advice, and although this has currently been launched for ‘offshore’ disclosures only we anticipate that there may well be scope to make a disclosure on similar terms in relation to ‘onshore’ matters.

We have much experience of making such disclosures on behalf of our clients to HMRC, and subsequently dealing with queries which HMRC raise in relation to these.

Please contact us for advice on the best way to approach making such disclosures.