If you are a UK resident with offshore interests, and you’re concerned that you may not have paid the right amount of tax historically, now is the time to take action. Under the Requirement to Correct legislation (RTC), you have until 30th September 2018 to make full disclosure to HMRC, after which time substantial penalties will be incurred.

As of 6th April 2017, a new requirement was introduced to encourage taxpayers to improve accuracy with regard to the reporting of foreign income. The ‘Failure to Correct’ regulation, which is being brought in from 1st October 2018, means that any UK tax resident who fails to correct their historic tax position will face punitive fines (equalling up to 200 of the underpaid tax, as well as an asset-based penalty).

If you meet the criteria and have any uncertainties regarding the accuracy of previous tax returns, the advice is clear: act now. By the time the 30th September deadline comes around, over 100 countries will have shared financial data with each other: meaning that HMRC’s ability to monitor undisclosed foreign income will be much improved, and the likelihood of inaccuracies slipping through the net – whether these are due to suspicious behaviour or genuine mistakes – are greatly reduced.

The Requirement to Correct: Does it Apply to Me?

The Requirement to Correct applies to all taxpayers with overseas interests and historic undisclosed income (or issues with their tax position). It sets out an obligation for all affected parties to correct such issues by the stipulated deadline. Failure to comply will result in harsh penalties.

This new statutory obligation doesn’t apply to income tax alone; it covers capital gains tax and inheritance tax, and a number of people (from trustees to partnerships).

For more details regarding what needs to be reported on/corrected, and what financial elements HMRC will be seeking to harvest information on via the new process, please visit their guidance page. See below for some examples of the types of ‘non-disclosures’ HMRC will be looking out for:

  • Any income from overseas assets – such as that which arises from property (sale of, rental, etc.).
  • Non-disclosed inheritance.
  • Non-disclosed income that has been earned in the UK and paid into an overseas bank account.
  • Failure to submit an IHT account (in instances in which the asset is offshore).

The Requirement to Correct Period

The period commenced on 6th April 2017, and runs until 30th September 2018. All corrections must be made by this time.

The Requirement to Correct: What Should I Do Next?

The most important thing to do is check all returns – even if you are/were non-UK domiciled or consider yourself not to be/not to have been a UK resident during relevant periods. First, ensure that you submitted returns for all relevant years – if you received inheritance via an offshore bank account, or were paid for employment via such means, for instance, you may not have realised that you needed to disclose income (or you may have forgotten to do so).

Next, check all submitted returns and make sure that these are 100 accurate. Seek the advice of an experienced accountant or tax adviser: even if you are sure you have filed everything correctly, there may be gaps or errors in your tax returns due to the receipt of inaccurate advice in the past.

Should you identify any errors, it is your responsibility to notify HMRC in advance of 30th September 2018.

The Requirement to Correct: Penalties

When scrutinising your tax affairs, you may decide it’s best to contact HMRC anyway if in doubt – that way, you will be protected against further penalties should it be decided in future that additional tax is due. After 30th September, issues will become much harder to correct, and harsh penalties will be introduced.

For example:

  • Any undeclared income/errors that haven’t been corrected will incur a fine of 100 – 200 of the tax due.
  • Further penalties: avoidance fines (50 of the amount of the ‘standard’ penalty, should HMRC be able to prove that funds have been moved in an effort to deliberately avoid RTC) and asset-based penalties (if unpaid tax is over £25,000 during any relevant tax year, a penalty of up to 10 of the asset’s value may be incurred).
  • Future investigations, which could uncover further errors (and therefore lead to additional penalties), and which pose a severe reputational risk to the individual or company under scrutiny.

If you’re concerned about your historic tax position, please contact IBISS & Co without delay. There is plenty of time to correct any mistakes and ensure that you avoid punitive measures. IBISS & Co’s experienced team will work with you to make sure that all information submitted is up to date and accurate, whilst undertaking strategy and planning measures to guarantee that – should additional payments be required – you do not lose money unnecessarily.

Even if you are certain that your historic reporting is precise, don’t hesitate to speak with us about performing a ‘health check’ on your current tax status, which will strengthen your position against future enquiries.

Print Friendly, PDF & Email

This Post Has 48 Comments

  1. find more information

    Fine way of telling, and pleasant post to obtain information about my presentation topic, which iam going to pressent in institution of higher education.

  2. Bir erkek tarafindan göğüs ellenince buyur mu?
    Gizli Üye. bir erkek tarafindan göğüsler ellenince cok buyur mu?
    Takip Et. Paylaş. 5 Kız Görüşü. 46 Erkek Görüşü.

  3. this post

    That is a very good tip particularly to those fresh to the blogosphere. Short but very accurate information… Thank you for sharing this one. A must read post!

  4. It’s really a nice and helpful piece of information. I’m glad that you just shared this helpful information with us. Please stay us informed like this. Thanks for sharing.

  5. fontanero

    Hi there, just became alert to your blog through Google, and foundthat it is truly informative. I’m going to watch out for brussels.I’ll appreciate if you continue this in future.Many people will be benefited from your writing.Cheers!

  6. Download Lagu

    I used to be able to find good advice from your blog posts.

  7. special info

    I must thank you for the efforts you’ve put in penning this blog. I really hope to view the same high-grade blog posts from you in the future as well. In fact, your creative writing abilities has motivated me to get my own, personal blog now 😉

  8. Michaelreilk

    [url=https://pharmacywithoutprescription.best/#]online pharmacy non prescription drugs[/url] cheapest prescription pharmacy

  9. view it now

    magnificent issues altogether, you simply won a logo new reader.What may you suggest in regards to your put up that you made some days ago?Any sure?

  10. site link

    This is a good tip especially to those new to the blogosphere. Short but very accurate informationÖ Thank you for sharing this one. A must read post!

  11. Kevin Samuels

    I like the valuable information you provide in your articles. I will bookmark your blog and check again here frequently. I am quite sure I will learn plenty of new stuff right here! Good luck for the next!

  12. anchor

    I have been checking out some of your articles and i must say pretty good stuff. I will surely bookmark your blog.

  13. Howdy! This article couldnít be written any better! Reading through this article reminds me of my previous roommate! He always kept talking about this. I’ll send this article to him. Pretty sure he’ll have a very good read. Many thanks for sharing!

  14. lesbian porn

    Good blog you have got here.. It’s hard to find excellent writing like yours nowadays. I honestly appreciate people like you! Take care!!

  15. RV Repair California

    I’m pretty pleased to discover this great site. I wanted to thank you for your time for this particularly fantastic read!! I definitely appreciated every little bit of it and I have you book-marked to check out new stuff on your website.

  16. Sa gaming

    You really make it seem so easy with your presentation but I find this matter to be actually something which I think I would never understand. It seems too complex and extremely broad for me. I’m looking forward for your next post, I’ll try to get the hang of it!

  17. Sa gaming

    Appreciating the hard work you put into your website and detailed information you offer. It’s awesome to come across a blog every once in a while that isn’t the same unwanted rehashed information. Fantastic read! I’ve saved your site and I’m adding your RSS feeds to my Google account.

  18. This very blog is obviously cool as well as factual. I have chosen a lot of interesting things out of this amazing blog. I ad love to return over and over again. Thanks a lot!

  19. gay porn

    You made some decent points there. I checked on the internet to learn more about the issue and found most people will go along with your views on this site.

  20. XHamster’da öne çıkan lana rhoades beeps from double
    penetration! porno videolarına göz atın. Tüm öne çıkan lana rhoades beeps from double penetration!
    XXX videoyu hemen şimdi izleyin.

  21. visit website

    Hi there! I could have sworn I’ve been to this blog before but after checking through some of the post I realized it’s new to me. Anyways, I’m definitely glad I found it and I’ll be bookmarking and checking back frequently!

  22. This is the perfect website for everyone who hopes to understand this topic. You understand so much its almost tough to argue with you (not that I actually will need toÖHaHa). You certainly put a brand new spin on a subject that has been written about for a long time. Excellent stuff, just great!

  23. سمعها

    Hi, I do think this is an excellent site. I stumbledupon it 😉 I’m going to revisit yet again since I bookmarked it. Money and freedom is the best way to change, may you be rich and continue to guide other people.

  24. Gerald Baird

    You need to take part in a contest for one of the best blogs on the internet. I’m going to recommend this blog!

  25. Michaelreilk

    [url=https://erectionpills.top/#]cheap erectile dysfunction pills online[/url] over the counter erectile dysfunction pills

  26. mp3juices

    I needed to thank you for this good read!! I certainly enjoyed every little bit of it. I’ve got you book marked to check out new things you post…

  27. descargar musica

    There is definately a lot to learn about this issue. I like all the points you made.

  28. Vincenzo Rakestrow

    I will right away take hold of your rss as I can not in finding your e-mail subscription link or e-newsletter service. Do you have any? Kindly permit me understand in order that I may subscribe. Thanks.

  29. MP3Juices

    I blog quite often and I truly thank you for your information. The article has really peaked my interest. I will take a note of your website and keep checking for new details about once per week. I subscribed to your Feed too.

  30. to read more

    I really like and appreciate your article.Much thanks again. Really Cool.Loading…

  31. This site was… how do I say it? Relevant!! Finally I’ve found something which helped me. Thanks!

  32. Michaelreilk

    [url=https://pharmacywithoutprescription.best/#]reputable online pharmacy no prescription[/url] legit non prescription pharmacies

  33. tang like zalo

    Hey There. I found your blog using msn. This is a really neatly written article. I’ll be sure to bookmark it and return to read extra of your useful info. Thank you for the post. I’ll certainly comeback.

  34. youtube to mp3

    You have made some good points there. I checked on the internet for more info about the issue and found most people will go along with your views on this site.

  35. RV Repair Near Me

    I was extremely pleased to discover this site. I need to to thank you for ones time due to this wonderful read!! I definitely really liked every little bit of it and i also have you book marked to see new things in your blog.

  36. Yonjeora

    [url=https://xenical.run/]where to buy xenical in usa[/url]

  37. Michaelreilk

    [url=https://antibioticwithoutpresription.shop/#]zithromax antibiotic without prescription[/url] buy cheap doxycycline

  38. Michaelreilk

    [url=https://erectionpills.top/#]best ed pills[/url] generic ed pills

  39. porn

    After going over a few of the articles on your web site, I truly appreciate your technique of writing a blog. I book-marked it to my bookmark webpage list and will be checking back in the near future. Please check out my web site too and tell me what you think.

  40. ??

    Papeis de parede animados MelbetMelbet e o aplicativo oficial para Android desenvolvido pela empresa de apostas com o mesmo nome. Com sua ajuda, os usuarios podem fazer apostas em dinheiro em eventos esportivos.Papeis de parede animados Melbet

  41. mp3juice

    I needed to thank you for this fantastic read!! I definitely enjoyed every bit of it. I’ve got you book-marked to look at new stuff you post…

  42. luxury gift for women

    focus 3 arıza kodu silme Lillie-Rose Slater eca arıza kodu 4 Arslan Cantrell buderus arıza kodu 4c Ashwin Herring eca arıza kodu 40 Kole Cantrell honda arıza kodu 4102

Leave a Reply