If you are an expat and want to pay the right amount of tax to HM Revenue and Customs (HMRC) back in Britain, then the latest offer to come clean may be the last.
Anyone who thinks they have paid too little tax can come forward and wipe the slate clean with the worldwide disclosure facility, which is open to expats in any country.
The facility allows taxpayers to file late returns and pay any tax due within 90 days of telling HMRC that they need to sort out their financial affairs.
To help, HMRC has published new guidance about how to take advantage of the facility.
The disclosure facility runs ahead of a new global tax initiative involving more than 100 countries. Each will swap financial information held by tax authorities about bank accounts and investments held by foreigners.
This common reporting standard is due to start in September 2018.
Contacting HMRC
HMRC is willing to listen to taxpayers who need to update their returns for income tax, capital gains tax, corporation tax or national insurance contributions.
To make a disclosure, expats need to get in touch with HMRC either directly or through a tax agent, such as an accountant or solicitor.
Contact HMRC online or by phone on 0300 123 1078 or by +44 300 123 1078 from overseas.
After giving notice that a disclosure is due, HMRC will write with a reference number and details of what to do next.
Expats may need an accountant to work out income schedules and the amount of tax due.
Penalty payments
HMRC will charge penalties for failing to have declared the tax owed at an earlier opportunity.
That’s because disclosure facilities have run for several years and HMRC believes anyone other than a hardcore tax avoider has already come forward.
“HMRC believes that its customers want to pay the right amount of tax and wants to help those that aren’t paying the right amount to put that right. The disclosure facility gives individuals and companies a chance to bring their affairs up to date in a simple, straightforward way,” said a spokesman.
“If you owe tax on your income you must tell us about any unpaid tax now.”
