HMRC is quite clear in stating that it is perfectly acceptable to have a bank account in another country as long as you disclose the income and gains on your UK tax return. They are getting much tougher and through international cooperation are sharing information to recover unpaid tax. They have left the door open for those needing to correct previous year’s declarations.
The ‘Requirement to Correct’ change lets HMRC chase payment of tax on the income and assets held offshore. The laws are contained within a relatively new piece of legislation: Section 67 and Schedule 18 of the Finance (No.2) Act 2017. This offers a way to correct information which has previously been submitted to HMRC.
You may have had a letter if you have offshore assets where you have not paid the tax. The circumstances may include:
If any of these apply to you then you need to make an Offshore Disclosure to HMRC. If you are a resident of the United Kingdom, it is your legal obligation to declare income you receive from these assets. When you make a disclosure will get you a lower penalty than waiting for an investigation. In September 2016 HMRC opened a scheme called The Worldwide Disclosure Facility. In October 2018 new sanctions were introduced under the above Requirement To Correct. If you have not yet disclosed then the benefits of doing so before this date have now expired but you still need to make a declaration!
Note that HMRC states the following:
“If you’re unsure if you meet the eligibility criteria for the facility, you must seek professional advice.” – That’s where we come in!
For a stress-free solution follow KinsellaTax’s easy disclosure steps:
Meet one of our specialists. Bring as much paperwork with you as you can so we can see what types of disclosure is best for you.
We contact HMRC and advise them you are making a disclosure. This may stop HMRC from opening an investigation. This takes on average 28 days and we will contact you as soon as we have a response from HMRC on your disclosure.
We calculate exactly how much income you have earned and need to declare on your disclosure. From there we work out how much additional tax you owe HMRC. Kinsella negotiates your penalty, which could be as high as 200% of the tax due without our negotiation.
Once we agree on a fair settlement with HMRC through your disclosure, you pay the outstanding tax due, with interest and penalties, walking away happy!
Mrs B from Liverpool made an offshore disclosure to HMRC with KinsellaTax and said this of her experience:-
“My sincere thanks to Kevin and Dominic at KinsellaTax. The fear of an intrusive tax investigation by HMRC frankly left me cold & frightened. My health had deteriorated to the point where I simply would not function anymore. I was totally unaware of how painless the process of making a voluntary offshore disclosure to HMRC would be & will forever be thankful for the day that I picked up the telephone to KinsellaTax”
Follow Step 1 and speak to a disclosure specialist today! Call 0800 471 4546