‘Worldwide disclosure facility’

Worldwide Disclosure Facility – disclosure & correction of tax irregularities

Monday, September 11th, 2017

Worldwide Disclosure Facility

Latest amnesty for taxpayers as ‘Requirement to Correct’ legislation looms

HMRC are urging individuals to review their offshore interests and consider if any tax is due in relation to them. This latest ‘amnesty’ gives taxpayers the opportunity to ‘come clean’ before the imposed deadline of 30 September 2018. This is the latest in a series of clampdowns to tackle offshore tax evasion and is backed up by HMRC’s increased access to information on overseas assets and accounts.

What happens if I miss the deadline?

If HMRC discovers tax is due and the matter hasn’t been corrected by the 30th September 2018, tougher sanctions will be imposed. These include a ‘Failure to Correct’  tax-geared penalty of between 100% and 200% of the tax not corrected and the ability for HMRC to ‘name and shame’ the more serious offenders.

In reality, it is a ‘catch all’ situation, forcing taxpayers to undertake a thorough review of their overall tax position and bring their affairs up to date. Depending on the severity of any failure to correct, HMRC may carry out a thorough review of records, going back up to 20 years.

What sort of items should I consider?

  • All receipts of income and gains from overseas
  • Benefits from offshore trusts
  • Rental property income
  • Offshore bank account income
  • Foreign pension schemes

These are just some of the items to consider but to ensure you’re fully compliant, speak with a professional tax adviser. The consequences of being wrong can be severe and HMRC is urging individuals to seek expert advice in this area.

If you have overseas assets or income which you think could be affected, please contact [email protected] or [email protected] who can advise you on your obligations under Worldwide Disclosure Facility and ensure you are compliant with the new rules. Or call 01527 558539 and ask to speak with either Helen or Julia.

Worldwide Disclosure Facility

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