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HMRC Requirement To Correct Deadline Approaching!

You could be named and shamed ...

 
 

POSTED BY HELEN BEAUMONT ON 02/03/2018 @ 8:00AM

As a result of tax transparency and cross-border cooperation, HMRC is aware of people with offshore assets. HM Revenue & Customs now has another round of legislation in its armoury ...

The requirement to correct deadline is fast approaching. Do you need some urgent tax advice?

The requirement to correct deadline is fast approaching. Do you need some urgent tax advice?

copyright: flynt / 123rf stock photo (licensee)

The Requirement to Correct (RTC) is a statutory obligation for taxpayers with overseas assets to correct any issues with their historic UK tax position. The second 2017 Finance Act introduced extremely punitive measures.

"The carrots previously offered have been withdrawn and now the stick is being wielded!"

This legislation applies to UK resident individuals with offshore assets and can also apply to non-residents with UK assets such as property with income that is taxable in the UK. People who have liabilities before 6 April 2017 now have until 30 September 2018 to notify and settle these liabilities with HMRC.

Those who fail to take action could incur punitive penalties:

  • Up to 200% of the tax due to HMRC, with a minimum payment of 100%

  • Asset-based penalties of up to 10% where the tax involved exceeds £25,000

  • Further penalty of 50% where HMRC can establish the person’s assets were intentionally relocated in an attempt to avoid them being reported

  • HMRC can name and shame the individual if the tax involved exceeds £25,000

  • No immunity from Criminal Prosecution, although HMRC should not prosecute if full disclosure is made

All individuals who have offshore assets and structures should review their UK Tax Returns before 30th September 2018 to ensure that they are correct.

Be aware that this affects income tax, capital gains tax and inheritance tax. Individuals are the main target for this legislation although in certain circumstances, companies can also be caught.

"Would you like to know more?"

If you need assistance regarding the requirement to correct legislation or any other disclosures, do call me on 01908 774323 or click here to ping me an email and let's see how I can help you.

Until next time ...

HELEN BEAUMONT


PS:

If you're looking to work with an expert tax advisor with a wide range of tax experience, do visit www.essendontax.co.uk to find out more about me and discover how I can help!


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More about Helen Beaumont ...

Helen brings the personal tax planning experience of the top 20 tax companies to Essendon. Formerly of MacIntyre Hudson (with 45 offices nationwide), Helen worked at Chancery for more than 10 years before joining Essendon as the personal tax specialist.

Tax Planning can make a considerable difference to your tax liability. Helen’s specialist knowledge in tax planning and experience ensures every opportunity to minimise your tax bill is utilised. By analysing your investments, income, profit and expenditures, Helen will provide strategic tax planning expertise that could offer significant savings, whilst delivering clear, honest advice and guidance.

When Helen is not at Essendon she spends time with her young son and likes going on long walks with the family dog.