There are some key declarations that you’ll need to make sure you’ve included.
Have you declared your credit card sales?
Where credit card sales have been omitted from business takings, HMRC are encouraging taxpayers to come forward and make a disclosure of the income that has been omitted to avoid incurring interest and penalties on top of the unpaid tax.
As you may be aware HMRC now receive information from third parties such as banks and credit card companies and will then match that data with business accounts, and will then open detailed enquiries if the figures appear to be inconsistent. They can go back up to 20 years and the more serious cases can lead to criminal prosecution.
If you have other undeclared income or gains that don’t relate to credit card sales, there are other HMRC disclosure facilities to enable you to bring your tax affairs up to date.
Please get in touch with us if you wish to discuss this as full co-operation can help minimise penalties.
Have you declared your overseas income and gains?
Where an individual is resident in the UK, he or she is generally taxable on worldwide income and gains whether or not it is brought back into the UK. Again, there can be significant interest and penalties on top of the unpaid tax if HMRC find out.
HMRC now exchange information involving savings and investments overseas with about 90 other countries and again match that data with individuals’ tax returns.
There is a special HMRC worldwide disclosure facility to allow taxpayers to bring their tax affairs up to date.
Note that there are special rules for individuals who are resident but not domiciled in the UK and those people’s tax status is likely to change from April 2017. Please contact us if you need advice on this matter.
If you’d like to discuss any taxation queries you may have, contact us today.