Every year, many UK taxpayers discover that they have under‑paid tax, made an error on a return, or simply overlooked a source of income. Rather than waiting for HMRC to catch up with you, a voluntary disclosure lets you proactively, explain what went wrong and settle the liability, often with reduced penalties.
In this guide we explain what a voluntary disclosure is, when it makes sense, how to make one correctly, and the benefits of acting early. All information reflects the latest HMRC guidance at September 2026.
What is a voluntary disclosure?
A voluntary disclosure is a proactive, unprompted report to HMRC about previously unreported or under‑paid tax. It is different from simply amending a tax return because it usually covers multiple years or complex errors,
HMRC treats a disclosure as voluntary when the taxpayer has no reason to believe that HMRC has already discovered (or is about to discover) the non‑compliance.
Why consider a voluntary disclosure?
Lower penalties then if it is discovered by HMRC
Certainty and Reputation protection
Coming forward voluntarily shows responsibility which is a factor HMRC considers when deciding whether to publish details.
Consider a voluntary disclosure if you have:
- Unreported income e.g., freelance work, rental income, dividends or crypto‑asset gains that were not declared.
- Incorrect or over‑claimed reliefs; reclaims that were made in error.
- Any tax where the normal amendment window (usually 12 months from submission date of 31 January) has passed.
How to make a voluntary disclosure
- Identify the error
- Choose the correct disclosure route.
- Notify HMRC of your intention.
- Submit the full disclosure
- Pay what you owe.
- Keep records
Benefits of using a professional accountant
- Accurate calculation : We ensure the tax, interest and penalty figures are correct, avoiding under‑ or over‑payment.
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- Clear presentation – A well‑structured disclosure is looked on favourably by HMRC and reduces the risk of follow‑up queries.
- Negotiation support – If HMRC queries any part of the disclosure, we can liaise on your behalf to reach a swift resolution.
- Peace of mind – Knowing the matter is handled correctly lets you focus on running your business or personal affairs.
Common pitfalls to avoid Pitfalls
Delaying the disclosure: The longer you wait, the higher the risk that HMRC discovers the error first, turning a voluntary disclosure into a prompted (non‑voluntary) one and increasing penalties. Act as soon as you identify the mistake.
Incomplete information: Missing details can lead HMRC to treat the disclosure as partial, which may attract higher penalties or further enquiries. Provide a full timeline and all supporting documents.
Using the wrong facility: Submitting to DDS when CDF is required (or vice‑versa) can cause the disclosure to be rejected, delaying resolution. Let us assess the nature of the error before choosing the route.
Failing to pay on time: Late payment triggers interest and possible enforcement action. Mark the payment deadline in your diary and set up a bank transfer or direct debit promptly.
Not keeping evidence: Without records you cannot prove the disclosure was made voluntarily or defend any later challenge. Store electronic and paper copies securely for the required retention period.
How Red Tulips Chartered Accountant can help
We offer a Voluntary Disclosure Service that includes:
- An initial, no‑obligation review of your tax position to identify any undisclosed liabilities.
- Guidance on the most appropriate disclosure route
- Preparation of a full, HMRC‑compliant disclosure pack, including calculations and supporting evidence.
- Liaison with HMRC on your behalf, handling any queries and negotiating payment terms if needed.
- Ongoing compliance advice to prevent similar issues in the future.
If you think you may need to make a voluntary disclosure, or simply want a second opinion on your tax affairs, get in touch with our team today.
HMRC’s Connect software is being enhanced and so HMRC are more aware than ever. Staying informed and using professional advice ensures you navigate the process smoothly.
Ready to discuss your situation?
Contact Red Tulips for a confidential, no‑obligation chat.
Let’s put things right together.
