Monday 1 October 2018 1:26 AM UTC
LONDON Oct 1: Taxpayers who have hidden assets or income overseas could be hit with fines worth twice the amount of tax owed under strict new rules introduced by HMRC.
3. If you’re unsure, we’re here to help
If you’re having trouble working out whether you have paid the right amount of tax or have offshore income you need to declare, you can either get help from HMRC or consult a tax adviser. Read get help with tax for more information.
4. Previous advice may be outdated
Because laws and specific circumstances can change, advice that you took in the past may no longer be valid. HMRC has unfortunately seen taxpayers who’ve sought guidance in good faith, get caught out because the advice has become out of date.
It’s important to check your tax affairs regularly.
5. Where you normally pay tax
If you’re not resident in the UK for tax purposes you won’t usually be liable to pay tax in the UK on your offshore incomes and gains but it’s important to check your residency status and what’s taxable from offshore income.
6. There are ways to tell HMRC about any untaxed worldwide income
If you’re concerned that you’re not paying the right amount of tax you can tell HMRC and may be able to use one of our disclosure facilities. You will still pay the tax that is legally due in full, alongside penalties and interest.
7. We’re bringing in tougher penalties for offshore evasion and non-compliance
HMRC has introduced new legislation called the Requirement to Correct which will dramatically increase the penalties for people who have not declared tax or declared the wrong amount of tax on their offshore income and gains.
If you have declared your taxable income and gains then you have nothing to worry about. But if you haven’t, and HMRC finds out, you will face an investigation and will have to pay the undeclared tax, a penalty of up to double the tax you owe, and could even go to prison.
You can avoid being charged the higher penalties by making a full disclosure of all undeclared tax liabilities under the Worldwide Disclosure Facility.
If you’re concerned, now is the time to come forward. You have until 30 September 2018 to correct this before the tougher new penalties are introduced.
CLICK TO FOLLOW UKMALAYALEE.COM