The Chartered Institute of Taxation (CIOT) has published an update about HMRC’s letters to UK individuals identified as having received overseas income or gains.
The letters have been prompted by information HMRC has been receiving under Automatic Exchange of Information (AEOI) agreements about UK residents with financial accounts and investments overseas. The letters generally give 30 days to respond and include a “Certificate of Tax Position” form which HMRC ask the individual to complete and return to confirm whether they have additional tax liabilities to disclose.
It is strongly advised that anybody who has received one of these letters seeks professional advice and the certificate enclosed should not be signed before doing so. As there is no specified period of time to which the certificate relates, and also no obligation to complete it, your clients could be opening themselves up to unnecessary scrutiny from HMRC. They could be exposed to higher penalties (up to 200% of the tax depending on the country involved) or even criminal prosecution.
How can we assist?
Our Tax Investigations & Employment Tax Director, Dave Jennings, has made numerous disclosures to HMRC for undisclosed offshore income or gains, including through the Worldwide Disclosure Facility (WDF) and is happy to help your clients when choosing the most appropriate way to respond.
Our Tax Disputes team also work with clients and their advisers nationally to negotiate the best solution for a range of issues, including:
|
• HMRC Tax Enquiries, Investigations and Disputes; |
|
• Employment Tax Issues including IR35, CIS; |
|
• CoP8 (Avoidance) and CoP9 (Fraud) Investigations; |
|
• Accelerated Payment Notices, Follower Notices and the 2019 Loan Charge; |
|
• Instalment Arrangements (Time to Pay); |
|
• PAYE and VAT Security Bond Notices; |
|
• Providing assistance at Tax Tribunals; and |
|
• Expert Witness in Civil Disputes and Criminal Prosecutions. |