Do you have money or assets abroad?

HM Revenue & Customs (HMRC) are getting tougher on those not paying the correct amount of tax on their worldwide income. They are now receiving financial information from more than 100 jurisdictions, including details about overseas bank accounts, business structures, trusts and investments. They are already using the information supplied by overseas banks, insurers and wealth and asset managers to identify those individuals who are not paying what they owe.

Are you confident your tax affairs are up to date?

You need to regularly check that you have declared all of your income liable to be taxed in the UK and if needed bring your tax affairs up to date. Your personal circumstances might change, for example you may have inherited an asset overseas. Tax laws change often too so this means that previous advice may be out of date.

If you are unsure, we advise you to contact EQ’s International Tax team or your engagement team to find out if you need to take action now.

If you find that you do need to bring your tax affairs up to date, you can choose to do this now using HMRC’s online disclosure facility at www.gov.uk/guidance/worldwide-disclosure-facility-make-a-disclosure. Don’t worry if this seems complicated, EQ can deal with the disclosure on your behalf.

If you think you have not paid the right amount of tax, you should take action now. The alternative is that HMRC find out about your cash or assets through the new exchange of information then penalties of more than 100% may be charged and you could even face criminal prosecution. Under new rules, penalties can be based on the value of the asset as well as the tax due. So if you choose to delay disclosing this information it’s very likely to cost you more.

For more information or advice, get in touch via taxation@eqaccountants.co.uk or on 01382 312100.