LAST CHANCE SALOON!!!!

UNDISCLOSED OFFSHORE ACCOUNTS- PAY UP NOW OR FACE MUCH BIGGER PENALTIES IN THE FUTURE

At the beginning of this month HM Revenue & Customs launched their new disclosure opportunity (NDO). This enables people with unpaid taxes linked to offshore accounts and assets to settle their tax liabilities at a favourable penalty rate, in most cases it will be 10%.

In order to benefit from that favourable rate those affected need to notify HMRC by 30 November 2009 of their intention to make a disclosure, and they need to provide the details, calculate the amount due and make a full payment by 31 January 2010 if done by post or 12 March 2010 if done online.

The Revenue gave a similar opportunity a couple of years ago but this will almost certainly be the last chance to come clean with previously undeclared overseas income and benefit from only 10% penalties. The new penalty regime which is already in place for all other taxpayer failures and errors is quite draconian; you can expect penalties of 100% of the unpaid tax for deliberate and concealed errors. If people have undeclared foreign income and do not take advantage of the NDO they could face a penalty bill of 90% more of the tax liability! We strongly recommend immediate disclosure for anyone concerned, before HMRC find you. Be aware that not only is there increasing communication between countries but last month the government ordered over 300 banks to give details to HMRC about their customers who hold offshore banks. The net is well and truly closing.

There is a separate disclosure facility for those with investments or assets in Liechtenstein. This follows an agreement signed in August 2009 between Liechtenstein and UK giving a free exchange of information between those countries to ensure that the right amount of tax is paid in each. This disclosure opportunity is open until 31 March 2015 and the penalty will also be capped at 10% of the tax lost.

If you know of anyone who has offshore income undeclared to the UK authorities we cannot express more strongly the benefits of disclosing now because they will be found sooner or later. We would be happy to help anyone through the procedure and ensure that the right amount of tax, interest and penalties are paid.