Worldwide Tax Disclosure Facility
HMRC has opened a new disclosure facility for individuals who have undeclared tax liabilities resulting from offshore investments or savings as an opportunity for them to settle their tax liability under favourable terms.
The Worldwide Tax Disclosure Facility (WDF) aims to encourage individuals with offshore investments and foreign bank accounts to settle any underpaid tax on offshore money, assets or investments before the introduction of the Common Reporting Standards (CRS), from when much tougher sanctions will be imposed.
HMRC is referring to this opportunity as the ‘last chance’ for tax payers with undeclared foreign income and gains, before HMRC receives information under the Automatic Exchange of Information Agreement made between the UK and over 125 countries.
Whilst the Requirement to Correct (RTC) penalty regime has ended on 30 September 2018, tax payers that failed to disclose their offshore income and gains can still settle their UK tax liability, however, they will be subject to the Failure to Correct (FTC) penalty regime. Under the Failure to Correct (FTC) regime the standard penalty is 200% of the tax liability involved. However, by voluntarily disclosing the additional foreign income and gains to HMRC the penalty can be reduce to a minimum of 100% of the tax liability.
If you are concerned of any irregularities in your tax accounts, then you should consider seeking the support and help of a professional and disclose any such anomalies through a Worldwide Tax Disclosure.
How can we help?
Capitax Financial understands that people sometimes do not know what their reporting obligations are and that mistakes can happen. We have extended experience in dealing with all forms of voluntary disclosures and HMRC investigations, hence, as part of our expertise we can assist you with:
- Making sure you understand where you have failed to comply with the UK Tax system.
- Explain what your reporting obligations are going forward.
- Disclose all the additional income and tax liabilities to HMRC by making sure your tax liability is minimised in accordance with the allowances that you are entitled to.
- Aim to minimise your penalties and interest charges by properly managing the Worldwide Disclosure being made.
- Negotiating and liaising with HMRC on your behalf to make sure we reach a fair settlement.
- Making the whole process smooth and take away the stress from you.
For further information or advice on the Worldwide Disclosure Facility please contact us.