It’s time to act now or face the consequences!
A legal requirement called ‘Requirement to Correct’ was included in the Finance (No. 2) Act 2017 . This created an obligation for anyone with undeclared UK tax liabilities involving offshore matters to disclose the relevant information about this non-compliance to HMRC by 30 September 2018. Please be warned that failure to make a full disclosure will lead to much higher penalties in the future under the new rules which will take effect from 1 October 2018.
Tacking offshore tax evasion
Since 2010, HMRC has been tackling offshore tax evasion with relative success. From 1 October, more than 100 countries, including the UK, will be able to exchange data on financial accounts under the Common Reporting Standard. This enables HMRC to access a considerable amount of data and significantly helps them to track down offshore tax evaders.
Worldwide Disclosure Facility
Taxpayers can currently correct their tax liabilities by using HMRC’s digital disclosure service as part of the Worldwide Disclosure Facility which was introduced in September 2016. HMRC’s new tougher approach will take effect after 30 September 2018.
Therefore, time is almost up. If you are confident that your tax affairs are accurate and up to date, then you need not worry. However, if you are unsure or you do have offshore assets that you need to disclose, professional advice should be sought immediately.
If you have any concerns, please call your usual contact at MFW for further advice. We have offices conveniently situated across Kent in Ashford, Cranbrook, Dover, Herne Bay, Maidstone and Sittingbourne.
For more information about our range of taxation services please click here.