HMRC are busy collecting data from over 100 countries and their financial institutions on UK resident taxpayers.
This is being collected through Tax Information Exchange Agreements and the Common Reporting Standards that the UK has entered into.
When HMRC receive that data, it is going to be scrutinised and used to target non-compliant taxpayers.
This is all going to take some time of course and most taxpayers would prefer to come clean rather than have a knock at the door from a Tax Inspector.
Now is the time to take some action.
HMRC are to launch the Worldwide Disclosure Facility (WDF) on 5 September 2016.
The WDF will enable those with outstanding tax to pay to put their affairs in order.
Unlike other disclosure facilities, the WDF will not offer any special terms.
The WDF will be available to anyone wishing to disclose a UK tax liability relating wholly or partly to an offshore issue.
From 5 September, a person can make a disclosure via the online Digital Disclosure Service, after first notifying their intention to disclose.
Once a person has notified an intention to make a disclosure, they will have 90 days to:
- Collate the information needed to complete the disclosure;
- Calculate the final liabilities including tax, duty, interest and penalties; and
- Complete the disclosure.
How we can help?
Our approach would be as follows:
- Confirm you are eligible to use the WDF
- Work with you to quantify the tax exposure on your undisclosed income for all years concerned.
- Act as your Agent and correspond directly with HMRC on all matters associated with the exposure so it is presented in the best frame of light.
- Liaise with HMRC directly in connection with the penalty negotiation process.
- Guide you through the process of closing out the disclosure and provide you with support in relation to your on -going tax affairs (tax returns etc.
If you require any assistance please do not hesitate to contact myself or one of our team.
All views and opinions expressed in the blogs are personal to the writer and may not necessarily be shared by everyone at TAP but our clients are always welcome to put forward alternative views and questions which we will endeavour to share via future blogs, where appropriate.