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HMRC internal manual

Compliance Operational Guidance

Supporting Guidance: employer compliance: guidance by subject: settlement: certificate of disclosure

Guidance about certificates of full disclosure can be found at (EM3811).

A certificate of full disclosure (CFD) allows an employer/contractor to certify that for the period covered by the compliance check

  • a complete disclosure has been made to arrive at the correct liabilities, and
  • that all obligations have been met.

Requesting a CFD gives the employer/contractor a final opportunity to disclose any further inaccuracies not previously disclosed during the course of the compliance check.

There is no statutory authority for such a request, but if returns have been submitted incorrectly, it is reasonable to ask for written assurance that all matters relevant to the employer/contractors affairs have been disclosed.

It is not appropriate to seek a certificate when the offence is failure to make a return within the statutory time limit and there have been no omissions from returns.

EC do not normally seek certificates of disclosure at the conclusion of a case but you should consider seeking them where

  • they are not satisfied that the employer has adequately disclosed all relevant income paid, payments to subcontractors or benefits provided to employees and this seems to be the only practical way of checking
  • in cases with serious omissions
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • if the employer has been the subject of a previous employer compliance settlement.

If you are unsure whether or not to seek a certificate of disclosure,

  • contact TAA Technical for advice or see COG904770.

Where it is considered appropriate to request a CFD, the request must be made

  • after the computations have been prepared, but
  • before they are agreed by both parties.

In all such cases emphasis must be given to the importance of the certificate and the serious view that HMRC would take of incorrect certificates. This should be done by the Senior Manager.

There is an EC version of the certificate available in SEES:

  • Cfd5 Cert of disclosure - EC Check.

You must make sure that the wording of the certificate fits the circumstances of your case. You can customise the certificate by selecting from the available options and sub options.

The certificate must be printed double-sided with HMRC’s statement (page 2) on the reverse of the certificate.

The CFD should be retained in the case papers for the normal retention period.