Business News

HM Revenue & Customs Launch Second (and Final ?) Offshore Disclosure Initiative

HM Revenue & Customs (HMRC) have confirmed details of their second, and probably final, initiative to encourage people to disclose previously undeclared sources of offshore income and settle the resulting tax liabilities at a favourable penalty rate.  This will run from 1 September 2009 to 12 March 2010 and those who make a full and complete disclosure will qualify for a 10% penalty.  Dave Hartnett, HMRC Permanent Secretary for Tax, has said "This will be the last opportunity of this kind."  Those who do not take this opportunity are likely to face a penalty of 30% or higher, plus an increased risk of prosecution.

If you think that you may need to make a disclosure you will need to act promptly, as you must register your intention to make a disclosure to HM Revenue & Customs between 1 September 2009 and 30 November 2009.  You will then have until 12 January 2010 to make a full disclosure using the paper forms supplied by HMRC and make payment in full, or 12 March 2010 if disclosing and paying electronically.  This is not long to gather all the necessary information, compute the tax, interest and penalties payable and complete the necessary documentation.

 We have an experienced team who can advise on:

• the suitability for you of making a disclosure under this facility
• alternative courses of action plus their advantages and disadvantages
• the risks associated with this process

We can also assist you with this process, known as the "New Disclosure Opportunity", from initial notification to HMRC through to the calculation of your liabilities and the submission of the disclosure on your behalf.  In our opinion ignoring this opportunity is not a viable option as HMRC have managed to obtain details of many offshore accounts and have a new harsher penalty regime to penalise those who persist in failing to disclose offshore income.