What is the HMRC Digital Disclosure Service (DDS)?
The Digital Disclosure Service is HMRC’s official process that allows individuals and businesses to voluntarily disclose tax irregularities and resolve their tax affairs before receiving a compliance letter investigating previously undeclared taxes. For undeclared income, unpaid tax, or errors in previous tax returns, the DDS allows you to put things right and avoid harsh non-compliance penalties.
If you’re worried you haven’t paid enough tax, don’t let the stress take over. The important thing is to notify HMRC as soon as possible, which is exactly what Total Books can assist with. We’ll help you come clean with HMRC and ensure your tax errors are rectified quickly and correctly.
We don’t just stop there. At Total Books, we’re keen to help our clients embrace modern accounting software and all it offers. Once your tax affairs are back on track, we can set up and customise cloud accounting solutions to prevent tax issues from occurring in the future. We guarantee timely tax filings, so you can rest assured that everything is handled seamlessly and stress-free.
Who should use digital disclosure?
The Digital Disclosure Service (DDS) is open to anyone who needs to make a tax disclosure to HMRC and get back on top of their tax affairs.
HMRC offers several facilities to help businesses, landlords, and individuals with specific tax issues. These include the Worldwide Disclosure Facility for offshore tax liabilities, the Let Property Campaign for undisclosed rental income, and the Contractual Disclosure Facility (Code of Practice 9) for deliberate & fraudulent tax errors.
When should you consider doing a digital disclosure?
If you’ve noticed an error on your foreign or UK tax records or failed to sign up for Self-Assessment, Total Books will help you make things right with HMRC. We understand that keeping on top of taxes is a challenge at the best of times, and sometimes, life can get in the way, causing you to slip up.
If you’ve found yourself in one of the following situations, reach out to us for advice:
- HMRC has contacted you to make a prompted disclosure with a nudge letter
- You’ve noticed your tax records are incorrect or incomplete
- You’ve discovered undisclosed income from rental properties, investments, or employment
- You’re worried past errors could mean you owe more tax
- You know you need to declare taxes, yet illnesses and other worries have stopped you
- You have undeclared foreign income tax (beware, HMRC receive tax info from 100’s of countries)
Taxes you can rectify
Here’s how HMRC’s Digital Disclosure Service can help you get your taxes back on track. Let our experts take the stress off your shoulders and handle the process for you.
Income Tax
Rectify tax owed on undeclared income from a side hustle, rental property, online sales or if you’ve made a mistake calculating or reporting your income.
National Insurance Contributions
Bring your NICs back up to date if you haven’t paid the correct amount, such as for self-employment or company director contributions.
Capital Gains Tax
Make a voluntary disclosure to HMRC if you’re yet to declare the capital gains on any assets or property you’ve sold.
Corporation Tax
Resolve issues of unreported business profits or mistakes in calculating the amount of Corporation Tax owed.
How we can help you make an HMRC voluntary disclosure
At Total Books, we know it can feel daunting to find an error in your tax affairs. If you’ve made an honest mistake or unknowingly left something out. Even if it was a deliberate error, we’ll help you make a full and honest disclosure through HMRC’s Digital Disclosure Service.
When you work with us, we act as your dedicated DDS tax agent, working on your behalf to ensure the process is smooth and stress-free. We handle all communication with HMRC from start to finish, so you won’t need to worry about a thing.
1) Assessment of your tax situation & quotation for services
We begin by thoroughly reviewing your tax records to understand the full scope of the issue. Whether it’s undeclared rental income, missed tax returns, or incorrect CGT calculations, we’ll identify what needs to be disclosed and gather all the details to prepare a full disclosure.
At this point, we will provide you with a detailed quote upfront and ensure that you are happy with the fees before we proceed. Being transparent about costs from the start ensures there are no unexpected bills or last-minute price changes.
2) Tax liability calculations
Next, we’ll calculate how much tax you owe, including any penalties or interest. With a keen eye for detail and a knack for accounting technology, we ensure nothing is overlooked. Where possible, we’ll find ways to minimise your liability through relevant allowable expenses or deductions.
3) Submission of digital disclosure to HMRC
Finally, we prepare and submit the disclosure form through HMRC’s online Digital Disclosure Service. We make sure the submission is accurate and timely to prevent unnecessary waiting.
4) Reduction of penalties & repayment plan arrangements
To help you minimise potential penalties outlined in these documents – penalties for inaccuracies in returns and penalties for failure to notify – Total Books will work with you to prepare a strong case.
With a proven track record of reducing fines by up to 100%, we’ll guide you through the process and, once resolved, assist in arranging manageable repayment plans to spread tax payments over several years.
Why choose Total Books as your DDS advisor?
Don’t let your past tax mistakes keep you up at night. With our DDS advisory services, we can provide a clear and supportive path to rectifying tax irregularities and regaining control of your tax affairs.
With hundreds of years of combined experience, our network of Ex-HMRC staff & Chartered Tax Consultants are here to help.
You can make a voluntary disclosure with Total Books’ full support. Call us on 029 2002 6505 or book a consultation directly with one of our tax experts.
Frequently asked questions for Digital Disclosure Service (DDS)
How far back can HMRC investigate my tax records?
HMRC can investigate your tax records for the past 4 years. However, this time limit may be longer if you have been careless with your tax obligations, and it can even go up to 20 years for deliberate errors & serious tax issues like tax evasion or fraud.
How long do I have to make a voluntary disclosure to HMRC?
After notifying HMRC that you owe tax, you have 90 days to submit your disclosure and make a payment using your Payment Reference Number (PRN). Total Books guarantees to have the disclosure filed within the 90-day window.
