Don’t get caught out. Thousands of people have income or assets abroad – maybe a foreign rental, overseas savings, or even a holiday home – and they think because they’ve paid tax in that country, that’s the end of it.

Wrong. If you’re a UK taxpayer, there’s a strong chance you could still owe UK tax, even if you’ve already paid abroad. And if HMRC catches up with you before you come clean, the financial hit can be massive.

What are the risks?

If you’ve not declared overseas income or assets to HMRC:

• You could face tax bills going back to 2011/12 (and earlier if you didn’t file UK tax returns).
• Even if it was a genuine mistake – not deliberate – you can still get slapped with:
  • Interest
  • And penalties up to a whopping 200% of the tax owed.

But there is a solution: the Worldwide Disclosure Facility

This is a legal route to get everything out in the open before HMRC knocks on your door.

If you’ve got:

• Income from outside the UK
• Assets held or located abroad
• Or run activities based outside the UK

…you may qualify to use the Worldwide Disclosure Facility.

The process gives you a chance to get back on the right side of the rules – and often results in far lower penalties than if HMRC discovers the issue themselves.

What you need to do:

1. Notify HMRC that you want to make a disclosure. This is done through the Digital Disclosure Service – either by you or your accountant/adviser.
2. Give them some basics: name, address, date of birth and National Insurance number.
3. HMRC will issue you a reference number and payment reference.
4. You then have 90 days to:
   • • Pull together all the information you need
     • Work out what’s owed (tax, interest, and any penalties)
     • Submit the full disclosure
     • And pay the amount due

Why this matters:

Tax rules around overseas income and assets are complex, especially when it comes to:

• How far HMRC can go back
• What you can offset against what
• And how penalties are calculated

But get this right, and you could save yourself thousands in unnecessary penalties and stress.

So if this sounds like you – act now. Get professional advice if you’re unsure, and if you need to disclose, do it before HMRC finds you first. You’ll be glad you did.

Nope. Let’s be clear: there’s no legal requirement for you to attend a meeting with HMRC. You’re not obliged to sit down with them, and you won’t be breaking the law if you say no.

BUT – and it’s a big but – that doesn’t mean you shouldn’t meet them.

If you’re properly prepared, and the meeting could help clear things up or resolve your case quicker and more favourably, then it might actually be in your best interests to say yes.

Key takeaway:
You have the right to decline – but make that decision strategically, not emotionally. Being well-informed and well-prepared is the real power play here.

Sometimes – but not always.

It all depends on the circumstances. In many cases, you don’t have to hand them over, especially if HMRC haven’t found any errors in your accounts or tax returns. If your records are clean and in order, you can often push back on this request.

However… if HMRC do find mistakes – whether small slip-ups or bigger issues – then they’re on much firmer ground. In that case, they can legitimately demand to see your bank statements as part of their enquiry.

Bottom line:

Don’t panic if they ask – but don’t assume you always have to comply either. It all hinges on whether your tax affairs are squeaky clean or not. If in doubt, get expert help before you agree to hand over sensitive financial info.

We often work with accountancy firms in two ways:

• Sometimes we offer tactical advice, helping behind the scenes without stepping in directly.
• Other times, we take the lead on the investigation, working closely with the accountant to get the best possible outcome.

But here’s the thing – when we’re not involved from the start, we regularly see the same avoidable mistakes cropping up. And they can cost you dearly.

3 common blunders in HMRC enquiries:

1. Not checking if HMRC started the enquiry on time.
HMRC has a limited time window to open an enquiry – miss that and the enquiry might not be valid. Yet many don’t check this basic point. Always verify if the enquiry is in time.

2. Falling for the “discovery enquiry” myth.
HMRC often talks about launching a “discovery enquiry” – but here’s the truth: technically, that term doesn’t even exist. Accountants need to challenge HMRC properly on what they’ve actually “discovered” and whether it justifies the enquiry.

3. Handing over information without asking key questions.
This is a big one. Before you send anything, stop and ask:

• Is this information reasonably required?
• What specific tax position is HMRC testing here?

Sending more than necessary can open cans of worms – and make life harder than it needs to be.

Bottom line?

Whether you’re a taxpayer or a tax adviser, handling an HMRC enquiry is a high-stakes game. Play it smart, ask the right questions, and don’t be afraid to push back where appropriate. Better still – get expert help early on, before small mistakes turn into big, expensive ones.

If HMRC are knocking, here’s the cold, hard truth: the key to getting the best possible outcome in a tax investigation isn’t just honesty or even having your paperwork in order — it’s control.

And the best way to stay in control? Bring in someone who knows the game inside out – a pro with real experience in dealing with HMRC. They’ll make sure HMRC get exactly what they’re legally entitled to – and nothing more.

Why controlling the process matters so much?

When done right, this approach can have a huge impact on:

✅ How long the investigation drags on

✅ Whether you can prove your innocence, if HMRC have jumped to the wrong conclusion

✅ The actual tax you end up owing (if any)

✅ The penalties you’re hit with

✅ And how many years HMRC go back digging through your affairs

Don’t fall into the trap: HMRC isn’t entitled to everything

Most HMRC investigations follow a set format, and too many people – including accountants – panic and assume HMRC can ask for whatever they want. They see a letter, grab the files, and hand it all over.

Stop right there.

In our experience, HMRC often ask for far more than they’re legally allowed to. And when you hand it over without question, two things happen:

1. They ask more questions – sometimes dozens more – that never would’ve come up.

2. You spend far more time and money answering things that were never relevant to begin with.

Be proactive – not reactive

The smartest move? Manage what HMRC sees and how they see it. If there’s an issue in your tax history, it’s far better to raise it yourself — clearly and correctly — before HMRC dig it up. That puts you in the driving seat and can make a major difference in how harshly you’re treated.

Final thought:

HMRC aren’t the enemy – but they’re not always right either. If you’re facing an investigation, don’t just react. Take control. Get expert help, stick to what the law says, and avoid giving away more than you need to. You’ll save time, reduce stress, and possibly slash the tax and penalties HMRC want to charge.

Taking part in the Let Property Campaign (LPC) – what you need to know

If you’re involved in the Let Property Campaign (LPC), here’s the scoop on what HMRC really cares about, and how to navigate the process effectively.

Do you have to send the LPC disclosure form?

HMRC is only interested in receiving the LPC disclosure form if there’s tax due. But what if you’re making a loss rather than a profit? In those cases, don’t panic. We always send HMRC a copy of the profit and loss account showing the losses and confirm that they’ll be carried forward to offset future profits on the self-assessment tax return. Simple.

HMRC and Self-Assessment: Don’t rely on them

While HMRC should automatically register you for self-assessment when you join the LPC, the reality is that they often don’t. So, here’s what we recommend: register for self-assessment yourself at the same time as notifying HMRC about your participation in the LPC. It’s an easy step that can save you headaches later.

The LPC penalty position: Is it really better?

HMRC claims that the LPC offers a more favourable penalty position compared to other disclosure routes. We don’t necessarily agree with that, but the reality is that if you have undeclared rental income, the LPC is your only option for making a full disclosure and getting things sorted.

Bottom line:

If you’re taking part in the LPC, don’t just rely on HMRC to handle the paperwork. Get your registration for self-assessment sorted early, double-check everything, and understand that while the LPC may not always offer the best penalty treatment, it’s the only route for those with undeclared rental income.

Let’s bust one of the biggest tax myths out there: millions of people have fallen behind with their taxes – especially the self-employed. And the good news? It’s fixable.

How people fall behind – and why it’s more common than you think?

Here’s a scenario that might sound familiar:
You start out self-employed – maybe after a redundancy or during a tough economic spell – and you’re so focused on building your new business that paperwork takes a back seat.
You meant to register for tax… but didn’t quite get to it.
Then another year passes… still no registration. Life gets in the way.
Now you’re worried HMRC will throw the book at you. So you bury your head and dread every brown envelope through the door. Sound familiar?

HMRC knows this happens – and has a team just for it

This isn’t new to HMRC. In fact, it’s so common that they’ve got special Hidden Economy Teams whose only job is to help people in exactly this situation – to get them back into the tax system without judgment.

Jail? Extremely unlikely. A settlement? Much more likely.

Here’s the truth: prosecutions are incredibly rare for people who come forward voluntarily. If you disclose previously untaxed income, HMRC will usually agree to a settlement – that includes tax owed, interest, and a penalty.
It’s far better to approach them than wait for them to come to you.

What if I’ve lost my records?

No panic. It’s a hurdle, but not a dealbreaker. Even if you haven’t kept business records for the entire period, experienced advisors can help reconstruct the numbers using estimates, bank data, and industry norms. It’s not perfect – but HMRC accepts this if it’s done reasonably and honestly.

Yes, it’ll cost. But the peace of mind? Priceless.

The biggest cost here is usually financial, not legal. But once people start the process (especially with a knowledgeable advisor at their side), most say the same thing:

“I wish I’d done this sooner.”

The weight of worry lifts. You’re no longer hiding. You’re in control again.

Final thought

If this sounds like your situation, don’t keep hiding from HMRC. You’re not alone. You’re not going to jail. And you can sort it – often far more easily than you fear.

If you’ve had a letter land on your doormat from HMRC with words like “Contractual Disclosure Facility” or “tax fraud” – take a deep breath. This sounds terrifying, but let’s break it down calmly, clearly, and in plain English.

What is the Contractual Disclosure Facility (CDF)?

It’s a formal process. And here’s the biggie:
HMRC must offer it to you — you can’t just ask for it (though in some cases, you can request it if you’re voluntarily disclosing tax irregularities).

The CDF is HMRC’s way of saying:

“We think there’s been tax fraud. If you admit it and tell us everything, we’ll guarantee not to prosecute you.”

Yes, really. If you cooperate fully, HMRC won’t take you to court. That’s a huge protection — and a serious reason not to ignore the letter.

What happens when you get the CDF letter?

HMRC usually sends the CDF letter by recorded delivery to the person they suspect of committing tax fraud. The moment it’s signed for, the clock starts ticking. You’ve got 60 days to respond with the paperwork they send you.

Miss the deadline? You’re in risky territory. HMRC will assume you’ve rejected their offer — and you could face a full-blown criminal investigation without the safety net of that no-prosecution guarantee.

The forms? Yes, they’re scary-looking. But this is where help counts.

With the CDF offer comes a stack of forms. HMRC wants you to formally agree to:

✅ Admit there’s been fraud
✅ Promise full disclosure
✅ Hand over details of what went wrong, when, and how

This isn’t something to take lightly — but nor is it something to panic over if you get the right advice quickly. Responding properly, with expert help, could make the difference between a managed settlement and a criminal investigation.

Final word: If you get a CDF letter, act fast — but don’t act alone.

This isn’t one to DIY. 60 days sounds like a lot, but time flies when you’re under pressure. The sooner you get expert help, the more likely you are to stay in control, protect yourself from prosecution, and reach a fair settlement.

If you’ve received one of these letters — or think you might — don’t bury your head. The CDF can feel scary, but it also offers a lifeline.

If you’re facing a tax investigation, the stress can be overwhelming. Sleepless nights. Worrying phone calls. And a gnawing fear that HMRC holds all the power.

But let’s be absolutely clear:
You have rights. You can take control. And you don’t have to go through this alone.

We defend people like you — with the law firmly on your side

We’re specialists in tax investigations — and we’re passionate about what we do. Whether you’re an individual, a business, or a tax advisor needing back-up, we’ve helped people all over the UK challenge HMRC’s demands, calm the chaos, and resolve investigations with as little disruption as possible.

We’re here when you need us — not just 9 to 5

Tax problems don’t stick to office hours, and neither do we. Evenings? Weekends? If it’s urgent, we’re available. If we miss your call, just leave a message or drop us an email at enquiries@taxdisputeconsultants.co.uk — and one of our experienced partners will get back to you sharpish.

Our approach: Get in early. Take control. Stay one step ahead.

Here’s the key: The sooner we get involved, the better we can control the direction of your case. We don’t let HMRC dictate the pace. We act proactively — managing the investigation to suit your timeline, not theirs.

And while we believe in being cooperative and professional, that doesn’t mean we roll over.
If HMRC makes aggressive or unreasonable demands, we push back — hard, and within the law. We negotiate, we persuade, and we defend — because that’s what you deserve.

Bottom line?

If HMRC’s knocking, you don’t need to panic — but you do need a plan.
And that’s where we come in.

Get in touch now. It’s not too late to take control.

If you’ve got money abroad and your tax affairs aren’t quite right — even accidentally — you could be hit by hefty penalties under the government’s Requirement to Correct legislation. We’re talking about fines far more severe than the usual rates, just because the issue involves an offshore account.

And while that sounds scary (and frankly, it is), the key is knowing your rights, your risks, and how to respond smartly and legally.

Here’s the bit HMRC won’t shout about…

When HMRC suspect someone with overseas links might’ve paid too little tax, they often open a formal investigation under what’s called Code of Practice 8 (COP8).

Now that name might sound official and daunting — but let’s be crystal clear:

COP8 isn’t law. It gives HMRC no special powers.
Everything they do under COP8 must still stick to what the law allows.

That means you don’t have to hand over every document they ask for, or rush into meetings without advice. You have the right to say:

“Is this information reasonably required by law?”

Why are they using COP8?

HMRC’s thinking usually goes something like this:
“You’ve got foreign income, maybe you’ve used some tax planning, and perhaps there’s something clever going on with your domicile or residency. So, let’s dig in.”

Often, people did put legitimate tax planning in place years ago — but the rules changed, and what once worked, no longer does. It’s not always about fraud or wrongdoing. It’s about keeping up with the shifting sands of tax law.

Should you cooperate with HMRC?

The leaflet that comes with COP8 says you should provide all info, attend early meetings, and help HMRC ask questions face-to-face.

Now here’s the reality check:

Sometimes, that’s useful.
Other times, it opens the floodgates to long, intrusive investigations where HMRC look for evidence to confirm their suspicion — not to objectively uncover the truth.

That’s why professional advice is essential at this stage. The sums involved are often big, the consequences serious, and the process stacked in HMRC’s favour unless you know how to protect yourself.

What happens if things escalate?

If HMRC think you’ve deliberately underpaid tax and knew your return was wrong, they can upgrade the case to Code of Practice 9 – that’s HMRC’s official route for suspected tax fraud.

In the worst-case scenario, you could even face prosecution.

Bottom line?

If you’ve got offshore assets and HMRC come knocking under COP8, don’t panic — but don’t go it alone either.

Take advice early. Challenge what HMRC are entitled to. Know your rights.
That way, you stay in control — and protect yourself from unnecessary costs, stress, and legal risks.

Want help navigating this? We know COP8 inside out. Get in touch.

If you’ve got tax issues involving income, gains or investments held abroad, HMRC expects you to come forward under the Worldwide Disclosure Facility (WDF). Sounds straightforward? It’s really not – especially when you realise HMRC expects you to do more than just add up numbers.

90 days sounds generous, but it’s not always enough

When you notify HMRC of your intention to disclose, they give you 90 days to get your full disclosure in. That includes working out:

• How much tax you owe
• What your behaviour was (e.g. careless, deliberate)
• How penalties apply based on the country or countries your assets were in

Now here’s the kicker:

HMRC expects YOU to self-assess your behaviour and penalty level – even though this requires detailed knowledge of tax law.
And if you get it wrong? You could face harsher penalties or even prosecution.

Yes, really.

90 days isn’t a legal deadline – but don’t ignore it

Let’s be clear: the 90-day deadline isn’t enshrined in law, and in more complex cases, HMRC are generally flexible about extending it. That said, if you’ve only got one investment or simple affairs, it is possible to hit the deadline – but don’t leave it to the last minute.

If you need more time? Ask. Don’t guess.

Penalties depend on where your assets are – and yes, each country is judged separately

HMRC’s system for overseas disclosures isn’t just about whether you owed tax or not – it also depends on where your money was held.

Each jurisdiction (i.e. country or territory) has a risk rating – and that impacts the penalty percentage.

So if you’ve got assets in multiple places, you have to calculate them all separately. That’s complicated, time-consuming, and – in our view – unfair to expect of most everyday taxpayers.

Couples and companies? You’re not treated as one

If, for example, you and your spouse both need to disclose, you can’t submit a joint disclosure – even if all the assets are shared. Each person has to make their own. And if you’ve got a company involved too? That’s a third separate disclosure.

The admin alone can be dizzying.

Make a mistake? HMRC can penalise or prosecute

HMRC has made it clear:

If your WDF disclosure is incorrect, they can raise penalties and may consider prosecution for serious errors.

And unlike the Contractual Disclosure Facility (CDF), there’s no guarantee of immunity from prosecution under the WDF – even if you disclose voluntarily.

The expectation is that HMRC won’t prosecute those who make a full, correct, and complete disclosure, but that’s based on guidance, not a guarantee.

WDF vs CDF – which is better?

Let’s be honest: the Worldwide Disclosure Facility offers little advantage over the Contractual Disclosure Facility. The CDF comes with a key benefit – HMRC agrees not to prosecute if you come clean at the start.

So, if your case is complex, involves serious irregularities, or you’re concerned about how HMRC might interpret your past actions, the CDF might be a better option.

Final word?

Don’t try to tackle this alone. This stuff is hard – even for tax professionals.

If you’ve got overseas assets and tax to declare, get expert help, be honest, and act early.
Trying to save money by going it alone could cost you a lot more in penalties and stress down the line.

If HMRC suspects something’s not quite right with your tax affairs – especially if you’ve done some clever tax planning or have offshore interests – they may send you a letter marked Code of Practice 8 (COP 8). It’s a formal notice that your tax affairs are being investigated, and yes, it can be scary – but here’s what it really means…

What is Code of Practice 8?

COP 8 is a leaflet and procedure used by HMRC’s Fraud Investigation Service (FIS) when they think someone’s tax planning might not work the way it’s supposed to – or worse, that some tax hasn’t been paid.

BUT – and this is important –

At the time COP 8 is issued, HMRC does NOT believe you’ve committed tax fraud or tax evasion. In short: they think the planning may be dodgy – not criminal.

HMRC’s new focus? Offshore assets and global interests

Until recently, COP 8 was mainly aimed at people using structured tax schemes sold by advisors – but that’s changing. These days, we’re seeing more people with offshore income or overseas financial links being contacted under COP 8.

If you’ve got foreign accounts, overseas trusts, or assets abroad and you get a COP 8 letter – that’s why.

What types of planning have triggered COP 8 investigations in the past?

If you’ve used any kind of aggressive or marketed tax planning, you might already be familiar with these:

• Disguised Remuneration (loans from your own company or trusts)
• Film Partnerships (often seen as tax shelters)
• Inheritance Tax Planning (especially involving offshore trusts)
• Employee Benefit Trusts
• Stamp Duty schemes involving sub-sale relief or options
• Any scheme requiring a DOTAS number (Disclosure of Tax Avoidance Schemes)

These were the bread and butter of COP 8 investigations.

Why fewer COP 8 letters were sent in recent years – and why they’re back

In recent years, COP 8 use actually declined, and here’s why:

• HMRC introduced new laws targeting these schemes directly
• Retrospective legislation clawed back unpaid taxes from earlier planning
• Big fines were introduced for accountants and advisors pushing disallowed schemes

As a result, there’s been less dodgy tax planning going on – so fewer investigations under COP 8.

But now? HMRC’s focus has shifted to offshore matters – and COP 8 is making a comeback, particularly under the Requirement to Correct rules.

Final Thought: Don’t assume HMRC are right – but don’t go it alone

COP 8 isn’t about fraud, but it can get serious fast.
HMRC wants to challenge what they see as “too clever” planning, and their aim is to get back the tax they think is owed – even if the rules weren’t clear at the time.

If you get a COP 8 letter, you’ll need to respond sensibly, calmly, and with proper help. Trying to deal with it yourself or ignoring it altogether could land you in deeper water – including higher penalties or, in rare cases, escalation to Code of Practice 9 (which does involve suspected fraud).

Worried or unsure? Get advice – fast.

Don’t wait until things escalate. Speak to a tax investigation expert who understands COP 8 and can help protect your position while cooperating with HMRC appropriately.

In recent years, HMRC has made one thing crystal clear: Offshore finances are firmly in their sights – and that includes people who live in the UK some of the time, or have complex residence or domicile statuses.

You don’t need to be “officially resident” to be on HMRC’s radar – if you have links to the UK and overseas assets, you could be contacted.

The game-changer: Global info sharing between tax authorities

Here’s the big shift – and it’s already happening:

• A piece of international legislation called the Automatic Exchange of Information (AEOI) came into force recently.
• Now, tax authorities across the world are swapping financial data with each other.

• That includes info from:

  • Banks
  • Building societies
  • Investment firms
  • Insurance companies

If any of those organisations spot a link between a customer’s account and another country (like a UK address, for instance), they flag it and automatically pass that info to the relevant tax authority.

So if you’ve got accounts overseas, HMRC might already know about them – even if you didn’t think they would.

What happens next? Expect a letter from HMRC’s Risk & Intelligence team

HMRC is now using this tsunami of data to flag potential under-declared income. In fact, they’ve already started sending out standard letters to people, asking them to:

“Confirm you’ve declared all your income, both UK and overseas.”

Even if you’ve done nothing wrong, these letters can feel intimidating – and it’s vital to respond properly.

Don’t ignore them. Don’t panic. And definitely don’t guess your way through it.

It’s complicated – even if you’ve done everything right

Here’s the kicker: this data-sharing system doesn’t consider context. So if your finances are perfectly legal and above board – but just a bit complex – you could still get flagged.

If you:

• Have offshore bank accounts or investments
• Own foreign property
• Are UK-linked but not UK-domiciled
• Use trusts or investment wrappers overseas

…then it’s highly likely HMRC’s Risk & Intelligence Unit already has your info – and is watching.

What should you do if you get one of these letters?

Get help. Simple as that.

Speak to a tax investigation specialist – ideally someone who understands COP 8, offshore tax rules, and the AEOI system.

They can:

• Help you review your situation calmly
• Respond clearly and confidently to HMRC
• Make sure you’re not overpaying or triggering unnecessary penalties

Let’s be brutally honest — getting a letter from HMRC about a tax investigation is terrifying. It doesn’t matter whether you’re an individual or a business. Even if you’ve done everything right, the process can be confusing, draining, and emotionally overwhelming.

But here’s the truth you need to know:

If HMRC is investigating you, it’s because they already believe something’s not right.

They don’t pick names out of a hat. Before starting a tax investigation, HMRC usually goes through a rigorous internal check using all sorts of data and risk models. They only open up a full compliance check if they’ve seen something in your tax affairs that looks unusual or incorrect.

The way your investigation is handled really matters

Think of a tax investigation like a court case. How it’s managed – from the first reply to the last document you submit – can make a huge difference to:

• How much tax they say you owe
• The size of any penalties they try to apply
• Whether they think you’ve made an honest mistake or been deliberately misleading

Handle it poorly, and a stressful situation can quickly become unbearable – financially and emotionally.

Handled well? It can be a bumpy ride, sure, but one that ends with clarity and resolution.

What should you do if HMRC starts investigating you?

Don’t panic. But also — don’t go it alone.

You need someone on your side who knows the system inside out and can help level the playing field.

A good tax dispute expert will deal with HMRC on your behalf, protect your rights, and make sure nothing is said or done that could be misinterpreted.

And remember — just because HMRC believes something’s wrong doesn’t always mean they’re right. But how you respond could decide what happens next.

If you’ve received a letter from HMRC offering you something called the Contractual Disclosure Facility (CDF) – stop, take a breath, and read this carefully.

This isn’t your average tax enquiry. HMRC only uses this process when they suspect you’ve committed serious tax fraud – and it’s officially issued under something called Code of Practice 9 (COP9).

Let’s be clear:

This is one step below criminal prosecution.
But the good news? You’re being offered the chance to come clean and avoid prosecution – if you play it right.

What is the Contractual Disclosure Facility (CDF)?

It’s HMRC’s way of saying:

“We think you’ve committed tax fraud – but we’re giving you the chance to fully disclose what’s gone wrong and settle things civilly.”

You’ll be asked to make a full and honest disclosure of all the issues – and in return, HMRC promises not to prosecute you criminally, as long as you co-operate fully and truthfully.

But – and it’s a big but – this isn’t something to take lightly.

🕵️ Who sends out the CDF?

This isn’t handled by your local tax office or a call centre. It comes from HMRC’s Fraud Investigation Service, and the letter will be signed off by an authorised officer – a serious move only used when:

• HMRC believes there’s been deliberate tax fraud
• They estimate at least £75,000 or more in unpaid tax

So if you’ve received one of these letters, HMRC already thinks something big has gone wrong in your tax affairs.

🧠 What should you do?

📢 Don’t ignore it. Don’t reply without expert help.

This is not a DIY situation. You need a tax expert who deals with COP9 and CDF cases day in, day out. Someone who understands the process, the risks, and how best to protect you.

Handled correctly, the CDF can be your best route to avoid prosecution and reach a fair settlement. Handled badly, you could make things much worse than they already are.

If you’ve been renting out a residential property but haven’t told HMRC — whether by accident or because you thought there was no tax to pay — now is the time to act.

Why? Because HMRC’s Let Property Campaign (LPC) is still open — unlike many past campaigns, there’s no set end date… for now. But don’t assume that means you can leave it forever. When it closes, it could be gone for good — and penalties could be harsher.

What is the Let Property Campaign (LPC)?

Simply put, it’s a way to voluntarily declare income from residential letting to HMRC — and get back on track with your taxes. In return for being honest and upfront, HMRC usually offers lower penalties and a less stressful experience than if they catch you first.

But I Don’t Make a Profit, So I Don’t Need to Tell HMRC… Right?

Wrong. This is one of the biggest misconceptions.

Even if your mortgage and running costs wipe out any actual profit, you still need to register for Self Assessment and declare the income and expenses on your tax return. HMRC needs to see the full picture — not just the bottom line.

Who Can Use the LPC?

To qualify, you must have residential rental income — whether that’s from:

• A single buy-to-let property
• A holiday let
• A room you rent out in your home

But here’s the key:

If you’ve also got other undeclared income — for example, you’re self-employed and haven’t declared all your earnings — you must include everything in your LPC disclosure.

This isn’t a pick-and-choose situation. HMRC expects you to come completely clean — not just about rental income, but about any undeclared income across the board.

Final Tip: Don’t Wait for HMRC to Contact You

If HMRC discovers you first, you’ll likely face harsher penalties — and possibly an investigation. But if you tell them before they come knocking, you’re far more likely to settle things quickly, with lower costs and far less stress.

Need help navigating the Let Property Campaign? Consider speaking to a tax adviser who deals with LPC disclosures. It’s a small step that could save you a mountain of trouble later.

If you have offshore assets and haven’t declared them correctly to HMRC, now’s the time to get things sorted. HMRC is using a powerful tool — the Worldwide Disclosure Facility (WDF) — to help people who need to disclose any tax liabilities related to offshore assets.

What is the Worldwide Disclosure Facility (WDF)?

The WDF is HMRC’s system for people with offshore interests who need to come clean about their UK tax obligations. If you’ve failed to declare income from assets held overseas, this is your chance to put things right before HMRC comes knocking.

HMRC Knows More Than You Think

HMRC is getting more information about offshore assets from countries around the world. Most nations now share information with the UK tax authorities automatically — if you’ve got a UK address on file, HMRC will know about any offshore income you’re earning.

For example, recently, there’s been an increase in data from countries like India (related to investments) and Australia (mostly about rental income). So, if you think you’re flying under the radar — think again.

Why Would I Use the WDF?

If you’ve paid tax on your offshore assets in another country but didn’t realise you needed to pay UK tax on the income — this is where the WDF can help. It’s designed for people who owe UK tax on offshore income or investments, either partially or entirely.

HMRC is increasingly sending out letters to individuals suggesting they review their tax affairs and take advantage of the Worldwide Disclosure Facility. It’s a sign they’re being proactive, so you should be too.

What Happens If I Don’t Use the WDF?

If HMRC catches you first, the penalties could be substantial — not to mention the stress of dealing with a tax investigation. So, it’s always better to disclose voluntarily. The WDF allows you to correct mistakes with less hassle and, importantly, lower penalties.

Don’t Wait for HMRC to Contact You

HMRC already has access to a vast amount of data about offshore assets. If they’ve sent you a letter suggesting you use the WDF, don’t ignore it. By coming forward now, you’ll save time, money, and potential headaches down the line.

Need help? Speak to a tax adviser who can guide you through the WDF process — they’ll make sure your disclosure is correct and help minimise any penalties.

If you’ve been renting out property and haven’t yet declared your rental income to HMRC, you could be at risk of fines or penalties. But don’t worry — the Let Property Campaign (LPC) is here to help. Here’s everything you need to know about how to use the LPC to regularise your tax affairs and avoid penalties.

How Does the Let Property Campaign Work?

The LPC is a way to come clean with HMRC about any rental income you’ve earned but haven’t declared. Here’s how it works:

1. Unprompted Disclosures: If you choose to voluntarily tell HMRC that you want to declare your rental income, you’ll need to inform them (either directly or through your advisor). HMRC will then send you a reference number and give you 3 months to submit the necessary paperwork. This is considered an unprompted disclosure, which typically attracts lower penalties.
2. Prompted Disclosures: If HMRC has gathered information about your rental income — for example, from housing benefit data or letting agents (they can legally force local authorities or agents to provide this info) — they will write to you and invite you to participate in the LPC. This is called a prompted disclosure, and it carries higher penalties than an unprompted one.

How Long Do You Have to Complete the Disclosure?

HMRC usually allows 3 months to complete the LPC. This is typically enough time if you have clear records and just one property. But if your situation is more complex, such as multiple properties or difficult-to-organise accounts, don’t panic. While HMRC suggests a 3-month deadline, if you need more time, you can request an extension. Based on our experience, HMRC is often open to negotiating an extension if you communicate your needs clearly and professionally.

What Happens After You Submit the LPC?

Once you submit your LPC forms, HMRC can ask questions, but if you’ve provided complete and clear information, your disclosure will generally be accepted without much hassle. It’s crucial that you get everything right — the more detailed and organised your paperwork, the more likely it is that your disclosure will be accepted.

Tip: Get Professional Help

The process of completing the LPC can be tricky, especially if you have multiple properties or complex tax situations. We strongly recommend working with a professional tax advisor to ensure everything is done correctly. It will save you time, effort, and stress, and help you avoid making mistakes that could lead to fines.

The Bottom Line

If you’ve been letting out property and haven’t declared your rental income, the Let Property Campaign is your chance to get things sorted. Come forward voluntarily (unprompted disclosure) to benefit from lower penalties. If HMRC prompts you, the penalties will be higher, so it’s best to act quickly and sort things out. Don’t leave it until HMRC contacts you!

Being investigated by HMRC can feel like a nightmare, but understanding why it happens and how the process works can help you get through it with less stress. Here’s everything you need to know about tax investigations, why they happen, and how you can deal with them.

Why Is HMRC Investigating You?

A lot of people believe that an income tax investigation is a random event, but the truth is: HMRC doesn’t conduct investigations without a reason. Typically, HMRC investigates cases because they believe there’s something wrong with your tax affairs. Here’s why they might come knocking:

• HMRC’s Data Collection: HMRC gathers information from a range of sources: banks, local authorities, newspapers, Yellow Pages, local directories, and even the internet. The more information they have, the higher the chance of uncovering discrepancies.
• Computerised Self-Assessment: Since the introduction of self-assessment in 1997, HMRC has had access to detailed year-on-year information about your business. Not only that, but they can also compare your results with other businesses in your local area or industry. If your business is significantly different from others, that might raise a flag.
• Informants: HMRC also encourages whistleblowers. So, if someone has tipped them off about your business, that could be another reason for an investigation.

What Triggers an Investigation?

So, how does HMRC decide to launch an investigation? It’s not about guesswork. They’ll often have specific data that suggests something isn’t quite right. Here are some red flags that could trigger a full investigation:

• Unexplained Differences: If there are significant discrepancies between your business and others in your area or industry, that could raise suspicion. For example, if your profits are consistently higher or lower than the average for similar businesses, HMRC might want to dig deeper.
• Informant Tips: If HMRC receives information from an informant (whether a disgruntled employee or someone else), they may start investigating your tax affairs, especially if the tip-off matches up with discrepancies they’ve spotted.

What Happens Next?

Once HMRC has gathered this information, they’ll assess whether they believe your accounts or tax returns are incorrect. While this doesn’t mean they automatically think you’ve done something wrong, they may conclude that there’s a distinct possibility that something isn’t quite right.

How to Handle It?

• Stay Calm: Just because you’re being investigated doesn’t mean you’re guilty. It’s simply HMRC’s way of ensuring that everyone is paying the right amount of tax.
• Get Professional Help: If you’re facing a tax investigation, get professional advice from a tax expert or accountant. They can guide you through the process, help you gather the necessary documents, and even represent you in dealings with HMRC.

The Bottom Line

HMRC investigations aren’t as random as they might seem — they’re based on data and suspicion. If you’re being investigated, don’t panic. Make sure to review your records, be honest with HMRC, and consider getting expert help to manage the situation. The earlier you act, the easier it will be to resolve things.

Stay on top of your tax affairs and get your paperwork in order — it can save you a lot of headaches down the road.

If HMRC has started an investigation into your tax affairs, it’s likely you’re feeling a little bit in the dark about what’s going on. The bad news is, HMRC is very unlikely to tell you exactly why they’ve decided to investigate. But don’t worry — I’ll explain what you can expect from HMRC during an investigation and how to handle it.

Why Is HMRC Investigating You?

You might be wondering, “Why is HMRC asking about my tax return?” The truth is: HMRC won’t tell you why they’re enquiring into your affairs. While it may feel frustrating, there are reasons for this, and it’s part of their process.

1. No Official Explanation: In most cases, HMRC won’t directly tell you why they’ve launched an investigation. They often describe it as a “check” to make sure your tax return is correct. This can make it feel like you’re in a bit of a mystery.
2. Hints to Specialists: Occasionally, specialist advisors or accountants might get some hints about the reason behind the investigation. But these are typically vague — and not a full explanation of why your return is under scrutiny.
3. Inference from Communication: If you do have meetings with HMRC or receive certain letters, you might be able to read between the lines and make some educated guesses. However, officially speaking, they won’t confirm exactly why they’re investigating you.

The Official HMRC Stance

HMRC will often stress that they’re not investigating your taxes because they suspect fraud or wrongdoing. Instead, they’ll say they’re merely checking that your tax return is accurate and in order. It’s important to understand that many people who are under investigation won’t know why it started. It can feel a little like they’re simply double-checking.

What Should You Do?

• Don’t Panic: Just because you’re being investigated doesn’t automatically mean you’ve done anything wrong. It could be a simple check. However, it’s still important to take it seriously.
• Get Professional Help: As frustrating as it is, trying to figure out the reason for the investigation on your own can be stressful. It’s often best to get expert help from an accountant or tax advisor who’s experienced in handling tax investigations. They can help clarify things for you and guide you through the process.
• Be Honest: If you’re unsure about something or can’t explain why you filed a particular return, be upfront with HMRC. Being transparent and cooperative often leads to a smoother process.

The Bottom Line

In short, HMRC doesn’t have to tell you why they’ve started an investigation, and they won’t give you an exact answer unless they feel it’s necessary. However, if you stay calm, keep your records in order, and get advice from a professional, you’ll be in a much better position to handle the investigation.

If you’re facing an HMRC tax debt that you just can’t pay right now, the Time to Pay (TTP) arrangement might seem like a lifesaver. But before you think it’s a quick fix, it’s important to understand what’s involved and whether you’re actually eligible. Here’s the scoop on how the process works, and what HMRC expects from you.

What is “Time to Pay”?

The Time to Pay (TTP) arrangement allows individuals or businesses to spread their tax payments over a set period of time. However, there’s no guarantee HMRC will agree to this, and it’s not a get-out-of-jail-free card.

How Does the Process Work?

1. Interest is Charged: If HMRC agrees to a Time to Pay arrangement, they will charge interest on the outstanding tax debt. So, while you’re not paying the full amount upfront, you’ll still be paying more in the long run due to the added interest.
2. Proving You Can’t Pay: To get a Time to Pay arrangement, HMRC will want to see proof that you can’t raise the money from other sources. In other words, they’ll need to be convinced that you genuinely can’t pay in full at the moment, and that you have no other way of settling the debt.
3. A Realistic Repayment Plan: HMRC will also need to see a realistic repayment plan. They want to make sure that there’s a genuine chance that you will be able to meet any payments due under the agreement. This means they’ll want to know exactly how much you can afford to pay each month.

It’s Not Quick, and It’s Not Easy

This process can take a while. HMRC is often reluctant to agree to Time to Pay unless it’s absolutely necessary, and they will ask for detailed information about your finances. Expect to provide:

• Income: How much you’re earning, and where it’s coming from.
• Outgoings: Your monthly expenses and any debts you have.
• Assets: What assets you own (e.g., property, savings, business assets) and how easily they could be liquidated.

If HMRC sees other options for you to raise the funds, they’re likely to refuse the Time to Pay arrangement. They want to be sure this is the only viable option.

What Does HMRC Want to Know?

When you apply for a Time to Pay arrangement, be prepared to hand over a lot of information. This is what you might be asked to provide:

• Full details of your income and outgoings (including business income if you’re self-employed).
• Your asset position, including any property, savings, or other valuable items.
• Any debts or financial obligations you currently have.

This level of detail might feel invasive, but HMRC needs to be sure that a Time to Pay arrangement is the best solution for both parties. If they can see a way for you to pay off the debt more quickly (or through other means), they’ll likely ask you to explore those options first.

Is It Worth It?

The Time to Pay scheme can give you some breathing room if you’re struggling to pay your tax debt all at once. However, it’s not a quick fix, and it comes with the added burden of interest on the outstanding debt. You’ll need to make sure you have a realistic repayment plan in place, and be ready to provide detailed financial information to HMRC.

Top Tips for Success:

1. Be Prepared: Gather all necessary financial documents, including your income, expenses, and assets, before approaching HMRC.
2. Be Honest: Don’t hide any information — being transparent about your financial situation will help build trust with HMRC.
3. Keep Communication Open: If your circumstances change, let HMRC know straight away. They’re more likely to work with you if you’re proactive and transparent.

Get Professional Advice

If you’re unsure whether Time to Pay is the right option for you, or if you need help negotiating with HMRC, it’s worth getting advice from a tax professional. They can help you present your case, ensure you’re providing the right information, and give you the best chance of a successful arrangement.