Award-winning Birmingham accountancy firm, Salhan Accountants, is calling on people with overseas investments and assets to declare them to HM Revenue & Customs (HMRC) under its new Requirement to Correct (RTC) regime.
The deadline for submissions under the regime is just weeks away (30 September 2018) and Salhan Accountants are concerned that many individuals with assets and property overseas may be caught out and forced to pay costly penalties.
The RTC rules require UK taxpayers to notify HMRC about any offshore tax liabilities relating to UK Income Tax, Capital Gains Tax or Inheritance Tax.
Under the rules many simple actions could lead to a potentially substantial bill for taxpayers, including renting out a property abroad, transferring income and assets from one country to another or renting out a UK property whilst living abroad.
Dr Anjulika Salhan, Director at the firm said: “Lots of taxpayers are not aware of the new RTC rules, but even the simplest transfer of money could lead to penalties if it is not declared by the deadline.
“Incredibly, more than 17,000 people have already contacted HMRC to declare an offshore interest and while these new rules are intended to catch serious tax evaders, lots of unsuspecting taxpayers are likely to be caught out as well.”
Anjulika pointed out that taxpayers had three options for correcting their tax liabilities including using the HMRC’s digital disclosure service, telling an officer of HMRC in the course of an enquiry or using any other method agreed with HMRC.
“Once HMRC has been notified of an intention to make a declaration, the individual will have 90 days to make a full disclosure and pay the tax that they owe,” added Anjulika.
“While you may be confident that your affairs in order, we thoroughly recommend that you seek advice before the deadline if you are unsure.”
