The Finance Act 2017 brought in a “Requirement to Correct (RTC)” for taxpayers who think or know that they have underpaid UK tax in respect of overseas income, assets or taxable activities. The deadline for the RTC is 30 September 2018 so taxpayers who do not come forward and report their omissions to HMRC by that date, face much stiffer penalties than hitherto.
From 1 October 2018, if a disclosure or discovery is made, the taxpayer will face penalties which start at a minimum of 100% of the tax due. In serious cases there is also an Asset Based Penalty of up to 10% of the underlying asset and additional penalties levied if HMRC can show that a taxpayer moved their assets in order to avoid reporting.
By 1 October 2018 more than 100 jurisdictions will have exchanged data with the UK under the “Common Reporting Standard”. So, as at the deadline, HMRC are being provided with information on UK taxpayers’ bank accounts, investments and trusts held around the world.
The intervening period to 30 September 2018 is the last opportunity to make a voluntary disclosure to HMRC and benefit from the lower penalty regime.
If you require further information or assistance to make a voluntary disclosure to HMRC then please contact us on firstname.lastname@example.org