HMRC Tax Disclosure Schemes | How to Make most of them
It can be stressful knowing that you owe HMRC money and worrisome when you receive that tell-tale brown envelope through your door. However, HMRC Tax Disclosure Schemes and systems are in place to help you bring your tax affairs up to date.
If you know that you owe taxes but aren’t sure of the right way to go about paying them back, keep reading for a step-by-step guide that takes all of the stress and difficulty out of tax disclosure schemes.
What is the role of the DDS?
You may have heard the term DDS being batted around in discussions concerning taxes but may not know what this particular acronym stands for or means. The Digital Disclosure Service (DDS) is a service by HMRC that assists companies and individuals in bringing their tax affairs up to date in a straightforward way. If you owe tax, you will need to declare it straight away, after which you will be given time to explain exactly what it is that you owe, how did you arrived at this tax amount and pay the money.
So, how do you go about working out what you owe?
First of all, be sure that you are making a disclosure regarding an applicable tax. The DDS deals with disclosures regarding Income Tax, Capital Gains Tax, National Insurance contributions and Corporation Tax. Once you’ve established the outstanding tax payments that you need to make are applicable, you will then need to notify HMRC that you wish to make a disclosure. You will then need to send them, in writing, details about all of your income, gains tax and duties that you haven’t told them about before. Try not to worry too much because if your tax affairs are wrong, it’s better to disclose the information so that steps can be made to limit the damage and have fewer penalties.
What could happen if you choose not to disclose unpaid taxes?
When dealing with taxes, honesty is the best policy. At present, HMRC is cracking down on individuals involved in tax evasion. By coming forward and disclosing information about outstanding tax payments, you will also present yourself in a much better light and will benefit from reduced penalties. If you fail to come forward and are found out, you can expect to see some hefty fines coming your way.
About The Accountancy Solutions
As Tax Advisers and Certified Accountants, The Accountancy Solutions have an in-depth understanding of operating environments and offer businesses time-effective and pressure-free solutions that fit in around their busy schedules. The Accountancy Solution’s accountants are proud to be specialists across a wide variety of industries. Whatever the business, The Accountancy Solutions has the experts and can offer an unrivalled high-quality service every to every one of their clients.
For more information about how small and medium-sized businesses can avoid being targeted by HMRC, along with the range of other tax and accountancy services The Accountancy Solutions offers, please visit https://theaccountancysolutions.com/ or call 01216297768 (Birmingham) or 02070784001 (London).