Are you making business decisions in the dark?
Many business owners look at management accounts as an additional cost that can be avoided. However, in reality they can be of huge importance to any business.
To April’s Tax Tips & News, our newsletter designed to bring you tax tips and news to keep you one step ahead of the taxman.
We are committed to ensuring none of our clients pay a penny more in tax than is necessary and they receive useful tax and business advice and support throughout the year.
Please contact us for advice in your own specific circumstances. We’re here to help!
Offshore income and the RTC rule
HMRC are getting noticeably tougher on those who try to evade tax by hiding their assets or income offshore. They are increasing the size and range of penalties charged, and increasing the number of prosecutions of serious evaders.
Broadly, a UK-resident taxpayer has a responsibility to notify HMRC of any taxable offshore income they receive. Income is considered ‘offshore income’ if it comes from a territory outside the United Kingdom. It includes:
– interest from overseas bank or building society accounts;
– dividends and interest from overseas companies;
– rent from overseas properties;
– wages, benefits or royalties earned outside the UK.
New legislation, known as the Requirement to Correct (RTC), will dramatically increase the penalties for people who have not declared tax or declared the wrong amount of tax on their offshore income and gains.
The purpose of the RTC legislation is to require those with undeclared offshore tax liabilities (relating to income tax, capital gains tax or inheritance tax for the relevant periods) to disclose those to HMRC on or before 30 September 2018. This will allow HMRC to take the appropriate action, for example, the collection of tax, interest and any penalties due under the appropriate legislation currently in force.