HMRC are urging UK to tax payers to come forward and declare any profits earned from offshore assets. Overseas profits may be from undeclared holiday homes or oversea properties. The deadline to declare the income is 30 September 2018 under the ‘Requirement to Correct’ regulation. Those who do not make the declaration before the deadline will face higher penalties than those who do.
Data exchange and stamping out tax avoidance
HMRC are able to enforce the regulation under the common reporting standard (CSR). First introduced in 2014 CSR consists of more than 100 countries sharing data in an attempt to stamp out tax avoidance. CSR will significantly enhance HMRC’s ability to detect offshore noncompliance.
Over 17,000 people have come forward to notify HMRC about foreign income and the tax due. You too can correct your tax liability by using HMRC’s digital disclosure services. Ensure you notify HMRC by the 30 September, after which you will have 90 days to make a full disclosure and pay the tax you owe.