Worldwide Disclosure Facility
If you have undeclared income or gains, linked to offshore bank accounts, investments, properties, companies or trusts, you need to consider if your tax affairs are in order ASAP. HMRC is now receiving detailed intelligence about overseas financial structures held by British citizens from well over 100 countries. The taxman intends to investigate every lead. From 1 October 2018 ultra-aggressive new penalties can apply. The number of prosecutions is also increasing. But you can clear up historic tax problems using HMRC's latest tax amnesty - The Worldwide Disclosure Facility.
What is the Worldwide Disclosure Facility?
- The Worldwide Disclosure Facility is an opportunity to reveal previously undeclared income and gains to the taxman, without the drama of an in-depth tax investigation.
- It's available to all UK residents with undeclared tax situations at least partly connected to an “offshore issue".
- Discounted penalties are available for making high-quality disclosures.
- The terms on offer are far more generous than the extremely harsh Failure To Correct rules which will apply after 30 September 2018.
- All tax irregularities must be disclosed: not just those related to overseas matters.
- HM Revenue and Customs WDF guidelines state: "If you're unsure about any aspect of your disclosure, you must seek professional help".
- The Initial WDF Registration is made online: using HMRC’s Digital Disclosure Service (DDS).
- After Initial Registration, you have 90 days to file your full and detailed disclosure: although we may be able to get a further 90 day extension in complex cases.
- 90 days may be sufficient in the most straightforward cases - where you have all the relevant information and documents readily to hand; and are certain of the appropriate tax treatment, years involved, and rates of tax etc. But that is most unusual. In the majority of cases we recommend that you take specialist advice before you register.
- Agents, such as Lynam Tax Enquiry Experts, can register on your behalf, and prepare and submit your disclosure for you (with your approval of course).
- Each entity concerned (e.g. individuals, companies, trusts, etc) must make a separate registration. E.g. husband & wife directors of a limited company might require 3 or more separate registrations and disclosures.
- Full payment of all previously under-declared liabilities (to include tax, interest, and penalties) must be made at the time of the full disclosure - i.e. within 90 days of the Initial Registration (or 180 days if HMRC have previously agreed it is a complex case).
- Time to pay arrangements may be negotiated in certain circumstances.
- All years up to 2015/16 must be included in the disclosure. VAT for later periods may require separate arrangements.
- All outstanding Tax Returns must be filed (correctly and completely) and the tax, interest, and penalties paid; in line with the Worldwide Disclosure Facility regulations.
- Anyone undergoing a current tax investigation can still register. But specialist advice is needed to consider if that is the best approach.
- There is no guarantee of immunity from prosecution but the taxman says: “Criminal investigation will be reserved for those cases where HMRC needs to send a strong deterrent message or where the conduct involved is such that only the criminal sanction is appropriate".
- Failing to register for the WDF could trigger the draconian Requirement To Correct and Failure To Correct penalties .
What if I don’t Register for the WDF?
HMRC is already getting information from the OECD reporting arrangements, and is now beginning a programme of investigating every case. Some of these investigations will be on criminal lines. The taxman has already sent out thosuands of warning letters - urging taxpayers to use the WDF.
From 1 October 2018 new ultra-tough legal sanctions start. These Failure To Correct are detailed in our section: Penalties for Offshore Matters.
How can Lynam Tax Disclosure Experts help me?
Lynam Tax Enquiry Experts have a huge amount of experience of all the various Tax Amnesties. We have successfully had scores of Offshore Disclosure Facility cases accepted by HMRC without any challenge. We have been acknowledged by HMRC's Fraud Investigation Service unit as one of the UK’s leading specialists in using the Offshore Tax Amnesties. We can still help taxpayers with offshore assets and undeclared tax liabilities to take advantage of the beneficial terms available through other legal Tax Amnesties (including the Worldwide Disclosure Facility, and the Contractual Disclosure Facility); and are already doing so for a significant number of clients, with the full blessing of HMRC.
Act now. Call Paul Lynam today on 0845 643 9997 - for a no obligation, confidential consultation.
PS: But Don't Delay! Time is running out!
Lynam Tax Enquiry Experts HELP ME?
- Offshore Bank Disclosures
- Contractual Disclosure Facility/ COP9
- Appeals / Tribunal Hearings
- Tax Amnesty
- Fraud Investigation Service
- Rental Income Tax Enquiry
- Business Tax Enquiry
We specialise in managing all Tax Enquiry, Tax Disclosures & Tax Disputes with HMRC.
We will help you throughout the Tax Investigation or Disclosure and save you money, so you can concentrate on running your business and enjoying your private life.
For a helpful, sympathetic, confidential and no obligation discussion: