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?
copyright: flynt / 123rf stock photo
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"The carrots previously offered have been withdrawn and now the stick is being wielded!"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
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