Starting from the 30 September 2018, the new “Requirement to Correct” (RTC) rules come into place, requiring taxpayers to make a disclosure of unpaid tax on assets, income and activities in other countries and transfers from the UK to other countries.
HMRC is encouraging individual taxpayers to make sure that they are aware of these rules, so as to not receive a penalty. From 01 October 2018, the minimum penalty will be 100% of the tax owed and could potentially be much higher.
As there is no minimum income threshold with RTC, anyone with unpaid offshore tax is required to disclose this, meaning that, as an example, taxpayers should check their position if they:
– Rented their own holiday home in another country without declaring income
– Received any offshore bank interest
– Made a gain on sale of an overseas property
Additionally, anyone who moved to the UK from abroad, but has, for example, assets or income from their country of origin, will need to make sure that they have properly declared their tax position.
There have been many examples of HMRC attacking tax avoidance schemes, structures, and undeclared income.
Recently, one film scheme partnership that attracted investment from sports stars such as David Beckham and Wayne Rooney has fallen under HMRC scrutiny. The scheme intended to make use of tax breaks for film production in the UK, allowing investors who backed films to claim tax relief for losses incurred from the production of those films.
HMRC won the appeal against Ingenious Film Partners and can now reclaim over £700m of tax.
Investors received demands from HMRC for immediate payment of multiples of their initial investments, with some now facing potential financial ruin.
Time is running out… the deadline is 30 September 2018.
– Review all of your global assets and income
– All income must be declared to HMRC
– Penalties for non-disclosure are very large
HMRC Seeks to be Preferential Creditor in Insolvencies
Recently announced by the government, there will be a public consultation on plans to make HMRC a secondary preferential creditor for certain tax debts paid by employees and customers on the insolvency of a business. HMRC was once a preferential creditor for certain taxes before 2003, however once the Enterprise […]
Research and Development (R&D) tax relief claims are far higher in recent years than ever before, with an astounding £21.4bn in tax relief claimed overall as confirmed in a report released by HMRC on 27 September 2018. Between 2000-2017, there have been over 240,000 claims made across the UK, with […]
What is Offshore Income Income is considered ‘offshore income’ if it comes from a territory outside the United Kingdom. It includes: – interest from overseas bank or building society accounts – dividends and interest from overseas companies – rent from overseas properties – wages, benefits, or royalties earned outside […]
Created in 1994, The Enterprise Investment Scheme (EIS) is a group of tax reliefs that succeeded the Business Expansion Scheme. It was created as an incentive to have investments in small unquoted companies carrying on a qualifying trade in the UK. The scheme is extremely popular, with £14.2 billion invested […]
Overview The Seed Enterprise Investment Scheme (SEIS) is designed to aid small, early-stage companies to raise equity finance by offering tax reliefs to investors that purchase new share in the companies. It works with the existing Enterprise Investment Scheme (EIS) that offers tax reliefs to investors in higher-risk small companies. […]
Research and development (R&D) tax credits reward UK companies for investing in innovation. They are incredibly valuable as a government tax relief. Companies that are eligible for this are ones that spend money on processes or services, enhancing existing services, or ones that spend money developing new projects. They are […]