Following the introduction of the requirement to correct (RTC), individuals with undeclared tax liabilities related to offshore matters are being urged to get in touch with HM Revenue & Customs (HMRC) before 30 September 2018 to make voluntary disclosures.
Who is affected by RTC?
The RTC deadline affects all individuals who have not fully declared their UK income tax, Capital Gains Tax (CGT) or Inheritance Tax (IHT) liabilities – yet surprisingly, HMRC has done very little to publicise the deadline.
Nevertheless, the tax authority has warned that those who fail to inform HMRC of these liabilities before the deadline will face much more severe penalties in the long-run – which is why it is important to act now if you feel that your tax affairs are not fully up to speed in relation to any of the above.
While RTC affects all UK taxpayers who might be caught in this position, the deadline also equally applies to any non-resident UK landlords who let property in the UK but have not declared income here.
It is also important to note that under RTC, the term ‘offshore’ includes the Channel Islands, Isle of Man and the Republic of Ireland.
What fines might I face if I fail to make a disclosure?
Taxpayers have been warned that, under the common reporting standard (CRS), HMRC is today receiving information from more than 100 jurisdictions all over the world in relation to individuals’ tax matters.
Any tax relating to offshore matters which is not settled with HMRC before midnight on 30 September 2018 will result in a flat penalty of 200 per cent of the tax liability, it has been warned.
If you require further assistance with regards to RTC, or you are unsure about how to make a disclosure, please contact MD Consulting.