Tick tock, tick tock…

UK taxpayers now have less than five working days so to ensure their offshore tax affairs are sorted and in order by 30th September. Failure to do will incur HMRC’s hefty penalties with a minimum fine being 200% or double the tax owed.

For any UK residents who may own assets offshore or receive part of their income abroad must declare any unpaid tax by this date. Despite any non-domiciled location, a new legislation called the Requirement to Correct (RTS) calls for all UK taxpayers to inform HMRC about any offshore tax liabilities that may relate to inheritance tax, capital gains tax or UK income tax. Throwing a wealth of complexities to any non-domiciled resident, this crucial deadline can not be ignored.

For those that may have paid an incorrect amount of tax on cross-border income in previous years must ensure they have corrected tax returns in place.

Any individuals who have paid the incorrect amount of tax on overseas income in previous years must have corrected their tax returns by the deadline. Furthermore, should evidence confirm that the individual was fully aware of any unpaid tax exceeding £25,000 in any tax year, thus an infringement of rules, they further risk a penalty of up to 10% of the total asset value.

Circumstances which fall under HMRC’s regulatory measures include transferring assets, income and pensions from one country to another, and renting a property both abroad and in the UK, while living abroad.

For some, HMRC’s recent slew of warning letters to both advisers and taxpayers regarding this deadline were received as early as last year. The communication further confirmed HMRC’s capabilities to receive and monitor information on a UK taxpayer’s financial situation across more than 100 countries so to enable their detection of any unpaid taxes.

To further discuss your offshore tax affairs ahead of the September 2018 deadline, contact Montfort by calling +44 (0)1483 202072; emailing info@montfort-intl.com or visiting montfort-intl.com

#offshoretax #tax #taxreturn #HMRC
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