What is a disclosure to HMRC and how do I make one?
Answered 17 March 2026
Disclosure to HMRC: What It Is and How to Make One
The term "disclosure to HMRC" covers several different situations depending on the context. Here is a structured overview based on the available sources.
What the law says
A disclosure of a tax failure involves three distinct elements under Schedule 41, Finance Act 2008:
- Telling – telling HMRC about the act or failure
- Helping – giving HMRC reasonable help in quantifying the unpaid tax
- Giving – allowing HMRC access to records to check the amount of unpaid tax
A disclosure is unprompted if it is made at a time when the person making it has no reason to believe that HMRC have discovered or are about to discover the failure. Otherwise, it is prompted.
The quality of a disclosure includes its timing, nature and extent.
HMRC guidance / practice
What counts as voluntary vs. non-voluntary
A disclosure is non-voluntary (i.e. prompted) if, for example:
- HMRC has contacted the person to say it wishes to make a compliance check of their return
- HMRC has arranged to visit their premises to explore identified risks, or
- HMRC has been supplied with information under an automatic exchange of information agreement that would lead to discovery of the issue
A disclosure made during a compliance check will only be voluntary if it concerns something the compliance officer has not discovered and is not about to discover.
Why it matters: penalty reductions
Making a disclosure — and its quality — directly affects any penalty charged. Penalties can be reduced by telling HMRC about errors, helping HMRC work out what extra tax is due, and giving HMRC access to check the figures.
HMRC's practice is to allocate reductions for quality of disclosure as follows:
- Telling: up to 30% reduction
- Helping: up to 40% reduction
- Giving access to records: up to 30% reduction
For an unprompted, non-deliberate failure where HMRC becomes aware within 12 months of the tax becoming unpaid, the penalty can be reduced to nil.
How to make a disclosure — the main routes
There are several routes depending on the nature and seriousness of the issue:
1. Correcting errors on a tax return
Where an underpayment is discovered after the amendment time limit has passed, taxpayers should notify HMRC so that corrective action may be taken.
2. VAT errors
For careless or deliberate VAT errors, you must either:
- Send an error correction notification, or
- Write to HMRC to make a disclosure, including a description of the error, how and why it happened, and the full amount of the inaccuracy.
3. Contractual Disclosure Facility (CDF) — for suspected fraud
The CDF (operated under Code of Practice 9 / COP9) is HMRC's main route for civil investigation of suspected tax fraud. Once COP9 is issued, the taxpayer has 60 days to either accept the CDF offer or reject it. To accept, the taxpayer must:
- Complete form CDF1 and send it to HMRC
- Produce an Outline Disclosure within the 60-day period, including a brief description of the frauds committed, a formal admission of deliberately bringing about a loss of tax, any non-fraudulent irregularities, and proposals for a payment on account
In exchange, under the terms of the contract, the customer will not be criminally investigated for matters covered by the Outline Disclosure.
Most voluntary disclosures will be handled under the CDF or through an offshore disclosure facility. It is extremely important that no disclosures which ought to fall within CDF are accepted locally.
4. Chargeable event certificates (insurers)
Where a deadline is missed or a chargeable event certificate is incorrect, the institution should make a disclosure to HMRC by email to contactus.largebusinessscotlandandni@hmrc.gov.uk, including details of the nature of the issue, its cause, how it was identified, and steps taken to prevent recurrence.
Citation sources
Types of behaviour Deliberate and concealed Deliberate Non-Deliberate Maximum penalty 100% 70% 30% Minimum penalty Deliberate and concealed Deliberate Non-Deliberate HMRC become aware of the failure more than 12 months after the tax becomes unpaid 30% 20% 10% HMRC become aware of the failure within 12 months of the tax becoming unpaid 30% 20% 0% As shown, it is possible to reduce the penalty to nil for an unprompted disclosure where the failure to comply with a relevant obligation is non-deliber
notice to file or a return containing the notice to file was given. If a voluntary return is received the statutory filing date is 31 January if the return is received on or before 31 October following the end of the tax year. If a voluntary return is received after 31 October following the end of the tax year, the filing date for the purpose of section 9ZA is the last day of 3 months from the date the voluntary return is delivered to HMRC. Although the time limit for corrections by HMRC is set
CDF has a 60-day timeframe for making an outline disclosure after a person has been accepted into the process. The person completes form CDF1 and sends it to HMRC. If HMRC accept the form, the person then has 60 days to make the outline disclosure. In any case where a person made their request on or before 30 September 2018 and then submitted their outline disclosure within the 60-day time limit and continued to fully comply with the CDF process they will not be liable to penalties for the failu
The particular facts and circumstances of the disclosure are the basis of the test, not the belief that it was either voluntary or non-voluntary. A national campaign highlighting an area of the trading community on which HMRC will be concentrating would not stop a disclosure from being voluntary. However a disclosure would be non-voluntary if a person made the disclosure after we contacted them to tell them we wished to make a compliance check of their return we arranged to visit their premises
COP9 is HMRC’s main tool for investigating cases of suspected tax fraud using civil procedures. At certain points it also opens the possibility of a criminal investigation. This would be carried out by The Fraud Investigation Service (Crime), not using COP9 procedure. COP9 applies once it has been issued to the customer, together with an offer of a contractual arrangement and a covering letter. Once COP9 has been sent to the customer they will have 60 days to choose one of two options. They can
Insurers or their tax representatives (referred to as “institutions” in this guidance) are required to deliver chargeable event certificates to both HMRC and policyholders within certain time limits (s552-552B ICTA88). Where the deadline is missed or the chargeable event certificate is incorrect, the institution should make a disclosure to HMRC by emailing contactus.largebusinessscotlandandni@hmrc.gov.uk. In dealing with the disclosure, HMRC will need to consider the penalty position. It would t
You’ll face penalties for any errors in your return that are careless or deliberate. You will not need to pay a penalty if you make an error despite taking reasonable care. An error is careless if you fail to take the care and attention that could be expected from a reasonable person in the circumstances. If you discover an error after making a return that was neither careless or deliberate when you sent it to HMRC, you must take steps to correct it. If you do not, we’ll treat the error as carel
ndents; (2) whether or not that disclosure was “prompted” or “unprompted”; and (3) the quality of the disclosure. 42. As regards the types of disclosure, paragraph 12(2) of Schedule 41 refers to three different types of disclosure as follows: (1) telling the Respondents about the act or failure (“telling”); (2) giving the Respondents reasonable help in quantifying the duty unpaid by reason of it (“helping”); and (3) allowing the Respondents access to records for the purpose of checking how much
At the core of HMRC’s compliance strategy is the wish to encourage voluntary compliance. Currently most voluntary disclosures will either be handled under the Contractual Disclosure facility (CDF) or through one of the publicised offshore disclosure facilities, such as the Liechtenstein Disclosure Facility (LDF). It will be rare to encounter a genuinely unprompted disclosure which does not fulfil the criteria for either CDF or an offshore disclosure facility. It is extremely important to ensure
any exemption from registration would be, liable for the relevant period. The relevant period is defined as the period beginning on the date with effect from which P was required to be registered, and ending on the date on which HMRC received notification of, or otherwise became fully aware of, P’s liability to be registered. 36. FA 2008, Sch 41, paras 12 and 13 provide for penalties to be reduced where P discloses a relevant failure. Para 12(2) provides that P discloses a failure by telling HMR