Do you have, or think you have, overseas income or assets that give rise to a tax liability which hasn’t been declared? Do you know what to do about it?
HMRC offers what is called the Worldwide Disclosure Facility (WDF) for this scenario.
We have significant experience gained across many years so that we can help you determine what needs to be disclosed (if anything), across what period of time and what is the lowest appropriate penalty (if any). We analyse the data, work out the tax, and submit the disclosure on your behalf.
Do you need to tell HMRC if they haven’t already caught up with you?
Yes. There are a number of reasons why.
The first is that HMRC is getting more and more information from foreign jurisdictions, and already people are getting letters from HMRC telling them that they know of overseas assets and asking the person to confirm that everything has been declared. These letters should not be responded to without being sure that the tax return is correct. If it is responded to positively and the return is wrong, there can be serious ramifications.
The second reason is that the financial penalties are significantly lower if you approach HMRC before realising that they are going to approach you. Penalties for untaxed overseas income or assets can be up to 200% of the tax – so securing the maximum discount is a must. Discounts are given for unprompted disclosures and then also for other behaviour types, called ‘giving, helping and telling’ during the period of disclosure.
Thirdly, tax investigations and tax enquiries can be extremely stressful if not handled properly. By coming forward first, and making an unprompted disclosure, engagement with HMRC is usually much less, meaning the stress and anxiety is far reduced. The process is shorter, and your adviser retains much more control.
And what’s more, the risk of prosecution for tax offences is reduced to virtually nil if you approach HMRC before they approach you.
So, if you are in any doubt as to whether you may have a UK tax liability because of assets or business ‘offshore’, come and speak to us. We can help you determine whether there is something you need to tell HMRC about and then take you through that process with minimal fuss.