How far back can HMRC go?

HMRC can usually look back four years, six if you were careless and twenty if the error was deliberate. Which one applies to you decides how many years a disclosure must cover, and how big the bill is.

The 4, 6, 12 and 20-year rules

4 years where reasonable care was taken; 6 years for careless errors; generally 12 years for non-deliberate offshore matters; up to 20 years for deliberate behaviour or failure to notify. Each runs from the end of the tax year (5 April).

How far back should a voluntary disclosure go?

A disclosure must cover every year HMRC could assess. Cover too few and HMRC can reopen the settlement; cover too many and you pay tax HMRC could never have collected.