WORLDWIDE DISCLOSURE FACILITY
Generally speaking, if you are a UK resident then you will be liable to UK tax on your worldwide income – and this could be in addition to any tax you have already paid overseas.
Unfortunately, some wrongly believe that if they declare their foreign income overseas and pay the associated tax, that they are fully compliant. This is not the case, and HMRC launched a campaign in the past known as the Worldwide Disclosure Facility to allow individuals to come forward and voluntarily disclosure their overseas income which has previously been un-taxed in the UK.
The good news is that the UK is in a unique position whereby it has more Double-Taxation (DT) agreements in place that any other country worldwide. When a DT agreement exists between two countries, then you can usually apply for a tax credit against your income so effectively you are not paying the same tax twice. However, sometimes the rate at which you can claim the tax credit is restricted, and it could be that your rate of tax payable in the UK is higher than the tax rate which you have already paid overseas.
cONTACT AN EXPERT today
Any overseas income does need to be declared to HMRC so that you can settle your tax position – it is always best to approach HMRC first before they contact you. Since 2017 the UK has been sharing information with over 100 countries to provide income details regarding their residents on a reciprocal basis under an initiative known as the Common Reporting Standard.
At UK Tax Returns we can oversee the entire process of enrolling you for the campaign, preparing the figures needed to make a full disclosure, and dealing with HMRC throughout the remainder of their enquires. When multiple tax years are involved we understand that this can often be a stressful prospect for our clients, and so we are here to assist you every step of the way and explain the process. We will always quote you with a fixed fee in advance for our assistance, so you have full peace of mind when engaging our services.
Please speak to us today regarding any potential disclosure that may be required in the utmost confidence.