Following gloomy news from the recent budget statement, the HMRC are signalling their intent when it comes to tax avoidance, with the latest announcement concerning off-shore tax disclosure.
Anyone who has felt the impact of an investigation by HMRC will understand just how costly the penalties are if large sums of money are owed in tax. Bills can be so large they might put smaller businesses under threat of closure, therefore it is worth planning ahead if you are uncertain about the amount of UK tax you should have paid in recent years.
The HMRC see it as the duty of people concerned to check not only their latest tax returns but also look at historical tax returns to make sure rules have been followed. In fact this is now a new legal requirement advisors and their clients need to be aware of.
The move was announced in the recent autumn statement and the deadline for relevant information to be sent to HMRC is September 2018. After this date the consequences of being found to be an offshore tax avoider will be severe.
The government will also be looking at a new law for advisors arranging complex off shore structures for their clients.