Non-UK Income? Notify HMRC now to avoid penalties
By 30 September 2018 tax authorities in over 100 countries will start exchanging information.
HMRC says individuals MUST disclose any unreported/untaxed overseas income by September 2018. Failure to do so will result in the individual becoming liable to a new penalty. It is anticipated the penalty may be even higher with a minimum penalty of100% of the tax due.
HMRC have been very clear to say that even individuals who have received tax advice in the past about overseas income should seek new advice ahead of this new deadline.
There may be individuals who have acted on the advice of accountants and tax advisers and in good faith not reported certain income. As the rules are now changing HMRC are urging all individuals to adhere to the new rules to disclose unreported non-UK Income.
The disclosure should be made ahead of 30th September 2018. From this date onwards tax authorities in over 100 countries will begin sharing information and individuals who have not disclosed overseas income will become liable to penalties.
What sort of information would need to be disclosed?
- activities carried on wholly or mainly outside of the UK
- assets held outside of the UK (eg properties)
- income from sources held outside of the UK
HMRC’s updated guidance can be found here