Many taxpayers may find themselves with penalties of 200% of the tax due if they have not brought their tax affairs up to date by 30 September 2018.
The government have given taxpayers until 30 September 2018 to come forward about any undisclosed income and capital gains from offshore sources to 5 April 2017. The deadline coincides with the government and HMRC receiving a huge amount of financial data from over 100 different countries signed up to an exchange of information called the Common Reporting Standards (CRS).
These rules will not only affect people deliberately evading UK tax but also those unaware that a tax liability exists or might exist from ordinary foreign bank accounts or properties, for example.
The main penalty for non-compliance by 30 September 2018 is 200% of the additional tax due. However, if the individual was aware of the requirement to correct, there could be additional penalties based on 10% of the value of the underlying asset. In some circumstances, HMRC also have the power to ‘name and shame’.
If you think this may apply to you or would like a tax health check just in case, please get in touch on 02073842647.