From 1st October HMRC will have its ability to detect offshore tax non-compliance greatly enhanced. This is because the Common Reporting Standard comes into force and the UK, along with more than 100 other countries, will be able to exchange data on financial accounts much more easily.
This works hand in hand with the new Requirement to Correct legislation which is already in force and requires UK tax payers to notify HMRC about any offshore tax liabilities. This will affect people who rent out a property abroad, transfer income and assets from one country to another or rent out a UK property when living abroad. If you are not aware of this you could well find yourself branded an offshore tax evader!
HMRC are saying that it is in tax payers’ interests to correct any non-compliance before the CRS data is received by them. They also say if anyone is unsure, then they should seek the advice of a professional tax adviser. As experts in all things related to payroll we can help. Please contact one of our team at our Birmingham head office.