The countdown is on for individuals, Trusts and Estates to submit a full disclosure to HMRC if they need to correct their underpaid UK tax position in respect of any offshore interests.
Failure to submit a disclosure to HMRC by 30th September 2018, means any of the following may apply:
- Tax geared penalties of between 100% - 200% of tax unpaid.
- Asset based penalty of up to 10% of asset value if undisclosed tax exceeds £25,000.
- Ability to publicly name & shame those with underpaid taxes.
- Enhanced penalties of up to 300% of tax unpaid if HMRC can prove assets were moved in an attempt to avoid RTC.
In circumstances where there tax has been underpaid due to genuine errors and mistakes, the minimum charge will be 100% in RTC failure cases.
Anyone who holds overseas assets or investments should therefore undertake a review of their tax reporting as soon as possible, and certainly before 30th September 2018.
Professional advice is always recommended before any declarations are signed, or any type of disclosure is made to HMRC. For more information on the above matter, please do not hesitate to contact Stuart Petrie (firstname.lastname@example.org) or your usual AAB contact.