Posted on 31st August 2018
As HMRC gains new powers to track financial information in more than 100 countries, it’s essential that you disclose any overseas assets by 30 September 2018.
Do you earn rent on a holiday home abroad, receive an income from an overseas bank or pension account, or own stocks and shares in another country? If so, you have just one month to disclose undeclared offshore income to HMRC or you may be considered ‘non-compliant’ and could face steep fines.
Under the new ‘Requirement to Correct’ obligation, people who are earning income from offshore assets must report this income. The scheme known as the Common Reporting Standard now enables HMRC to exchange financial data with 53 more countries than had previously been the case, extending its reach to Switzerland, Canada, Australia, Hong Kong, Singapore, United Arab Emirates, Panama and much of the Caribbean.
The types of income that you should declare include (if they date before 6 April 2017 and are non-compliant):
- Rent on holiday homes you own
- Transferring assets in and out of the UK
- Life assurance policies or pensions
- Stocks, shares or accounts held by a stockbroker
- Income from bank accounts, savings accounts or bonds
- Profits from the sale of assets, such as cars, property or art
After disclosure, you may need to pay your tax bill, along with any interest and late fines.
Don’t delay making your disclosure, though, because if you miss the 30 September deadline and become non-compliant, the minimum fine is set at 100% of the tax owed. Plus, HMRC can investigate tax owed as far back as 20 years, if you are believed to have been deliberately avoiding paying tax.
Get compliant, get peace of mind – we can deal with the entire process for you and ensure that your tax affairs are in perfect order, at home and abroad. Contact the JNR Accounting team today to find out more.