Are your tax affairs up to date?
April 16, 2018
Ever feel like you are being watched?
Did you know that HMRC receives vast quantities of data from letting agents, land registry records and platforms such as Amazon, Apple and Airbnb? HMRC has access to more information and technology than ever before! They can piece together networks and spending patterns to detect and pursue underpaid tax.
This is why HMRC run incentives and campaigns offering individuals and businesses the opportunity to come forward and pay any unpaid tax they owe, before HMRC come to them. For example, the HMRC Let Property Campaign offers landlords the opportunity to declare rental income they missed off their Tax Returns; maybe because they did not realise they had a tax liability. HMRC discount penalties for an unprompted disclosure; an incentive to go to HMRC before they find you.
Moreover, with the global crackdown on tax evasion, the days of sheltering assets overseas are very much a thing of the past. New ‘information sharing’ powers under the Common Reporting Standard mean that HMRC now receive data about overseas cash and assets held by UK individuals in over 100 jurisdictions.
If you have overseas assets producing income or gains not previously declared to HMRC, you have until 30 September 2018 to make a full disclosure under the Worldwide Disclosure Facility and put things right going forward.
From October 2018, new penalties come into force; including a penalty of 200% of the tax due and penalties based on the overseas asset value. Details of deliberate defaulters may also be published.
Now is the time to bring your tax affairs up to date. If you do need to make a disclosure to HMRC, we can help you through this process. Call CKLG Accountants on 01223 810100 and ask to speak to one of our private client tax specialists.