Common Reporting Standards And A Requirement To Correct
It needs to happen by 30th September ...
POSTED BY ROGER EDDOWES ON 06/08/2018 @ 8:00AM
The 30th September 2018 is important to those individuals who have undisclosed offshore income. This is the cut-off date that all tax liabilities should be disclosed and settled. HMRC's requirement to correct needs to happen now ...
Anyone with undisclosed offshore assets has a requirement to correct by 30th September!
photo by 'anders wideskott' on unsplash
New legislation comes into effect on that date. The most important part is that penalties will double from 100% to 200% of the revenue HMRC deems to have lost. Potentially, HMRC can also charge a further 10% of the value of any overseas assets held by an individual.
The legislation also means HMRC do not have to prove that the individual deliberately defrauded the country when passing the case for prosecution in the civil courts.
Although this may seem totally unfair, it is essential that all accountants and tax advisors pass this information along to their clients to avoid them potentially falling foul of the law. And that's the reason for this blog post.
HMRC are now using the Common Reporting Standard that has been set up between the UK and 90 other countries. It's designed to exchange information automatically so they may already know what individuals hold offshore and are already preparing to investigate them as soon as we reach the end of September.
"From 1st October 2018. 127 countries will be in the CRS mechanism; this information will be compared against submitted tax returns!"
The Internet is making the world a smaller place, and the Common Reporting Standard mechanism means that more detailed information is immediately available to HMRC regardless of how well assets are hidden.
Now, is the time to disclose any offshore interests before HMRC has the right to impose the most punitive penalties in the UK's history. You really don't want to be caught out by this.
"Would you like to know more?"
If you'd like to find out more about HMRC's requirement to correct by 30th September 2018 then do give me a call on 01908 774320 or click here to ping me an email and let's see how I can help you.
Until next time ...
If you're looking to work with a leading firm of accountants, then why not visit our website which you can find at www.essendonaccounts.co.uk and let's see how we can help you!
Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves ‘getting his hands dirty’, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.