Do You Have An Overseas Property Or Bank Account?
Uh-Oh! Is The Taxman About To Get You?
POSTED BY JONATHAN VOWLES ON 14/08/2018 @ 8:00AM
HM Revenue and Customs are stepping up the pressure on anyone who has overseas property, bank accounts or other assets to make sure that they have declared everything they should have to the taxman ...
If you have any overseas property, bank account or other assets then you have very little time to tell HMRC about it under their Requirement to Correct!
copyright: andreypopov / 123rf stock photo
From 30th September 2018, legislation called the 'Requirement to Correct' imposes draconian new sanctions on anyone who 'fesses up' to them about overseas undeclared income or gains. This means that anyone who hasn't told the taxman - but should have - only have a few weeks left to make that happens and to avoid these new penalties.
"But, how will the taxman know?"
The answer is that HMRC has been busy speaking to their tax colleagues all over Europe and further afield. They probably already know if you have a bank account or own a property in another country.
Some people have already had reminder letters from the taxman because HMRC knows they haven't declared all their overseas income! Don't get caught out because you think you might be safe as you probably won't be.
What are the sanctions? The standard penalty is 200% of the tax that should have been disclosed. There is also an asset penalty of up to 10% of the value of the asset in addition to the penalty. What is worse, this 10% asset penalty can be increased to 50% in some cases. By comparison, standard penalties normally range between 0% and 30% of the tax bill, but can be higher.
If you have any overseas assets, whether that is a holiday home overseas or you've inherited a house, a bank account, or stocks and shares, then you need to take action now. If you declare something now, then your penalties will be much less than if you procrastinate, and even worse if you try to hide them from the taxman.
If you need to make a disclosure of some missing overseas income then it is quite straightforward to get in touch and get us to do it for you! And if you have a friend this applies to, make sure they know about this too!
"Remember we are ready to help and make this a smaller problem than you might think!"
If you own overseas property or have other undisclosed assets, and would like to find out more about HMRC's Requirement to Correct, then do give me a call on 01234 752 566 or click here to ping me an email and let's see how I can help you.
Until next time ...
More about Jonathan Vowles ...
I've been an accountant in and for business since 1987 and have a wide experience of consultancy, audit, accounts, taxation and wealth planning work from individuals and small businesses to multinational corporations and charities.
My eclectic interests in growing and developing business span a number of areas, which can be summarised as strategic business advice and tax saving advice.
I have worked with the Chamber of Commerce to deliver courses for people about starting up in business and have lectured about tax for a major accountancy practice and for Milton Keynes College.
I relax by reading fiction and by getting away from the office in a campervan.
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