Worldwide Disclosure Facility Reporting and Offshore Tax

If you need to disclose an overseas tax issue to HMRC, you must do so through the Worldwide Disclosure Facility (WDF). This process is essential for all tax disclosures related to offshore income or gains. Handling offshore tax matters can be complex, with several factors to consider, including potential penalties and time limits. At Eastfield Accountants, we are here to guide you through every step, ensuring that your disclosure is accurate and compliant with HMRC regulations.

Certificates of tax position

Each year, HMRC receives extensive financial information on UK taxpayers from overseas jurisdictions through the Common Reporting Standard (CRS). If HMRC identifies that you have overseas investments, you may be asked to complete a certificate of tax position. While HMRC’s communication may suggest this is mandatory, there is no legal obligation to complete the certificate, and in many cases, it may not be in your best interest. Before responding to such letters, consult with our team to discuss your position and determine the best course of action.

Offshore tax penalties and time limits

Disclosures involving offshore income, gains, or certain UK-sourced income for non-UK residents are considered offshore non-compliance. These are subject to the Requirement to Correct (RTC) legislation, which covers non-compliance assessable for the tax year ending 6 April 2017 and earlier. Under RTC, taxpayers had until 30 September 2018 to correct any offshore errors. Failure to do so can result in severe penalties, up to 200% of the tax liability.

Moreover, the RTC legislation extends the time limits for assessing offshore non-compliance. If the non-compliance was unintentional, HMRC can raise an assessment up to 12 years after the relevant tax year, compared to six years for onshore errors. These extended limits apply to errors made from the 2013/14 tax year onward, depending on the circumstances. Given the complexity of these rules, it’s crucial to seek professional advice before making any offshore disclosures.

Partner with Eastfield Accountants for expert guidance on disclosing offshore tax issues

Navigating the Worldwide Disclosure Facility and dealing with offshore tax issues requires careful attention to detail and expert knowledge. At Eastfield Accountants, we’re committed to helping you manage these complexities effectively, ensuring compliance with HMRC while minimising penalties.

If you’ve recently received a letter from HMRC regarding a certificate of tax position or believe you need to disclose an overseas tax issue, contact Mark at Eastfield Accountants today for professional advice and support with your offshore tax disclosures.

Tax

Related services

See below for other related services we provide to fully support your financial needs.

  • HMRC Voluntary Disclosure
  • Tax advice for UK non-residents
  • UK Tax Returns & Advice for Australians
  • High Earner Tax Planning
  • Inheritance Tax & Estate Planning
  • Capital Gains Tax Advice
  • Corporate Tax Planning

Tax

HMRC Voluntary Disclosure

Tax

Worried about past tax filing errors? Eastfield Accountants can assist with HMRC’s voluntary disclosure service. Taking a proactive approach we can help you fix mistakes, minimising penalties. We’ll evaluate your case, guide you, and advise on the best solutions for efficient resolution.

Strategy, Tax

Tax advice for UK non-residents

Strategy, Tax

Navigating the complexities of tax obligations in the UK as a non-resident can be daunting. We are able to provide expert advice and services for UK non-residents ensuring that you comply with UK tax regulation.

Tax

UK Tax Returns & Advice for Australians

Tax

Mark specialises in assisting Australian tax residents relocating to the UK, helping them understand and comply with complex tax residency rules. Whether you're planning to move or are already residing in the UK, Mark can clarify your tax status and ensure adherence to UK tax laws.

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High Earner Tax Planning

Tax

Managing taxes as a high earner can be complex, but Eastfield Accountants is here to help. Mark specialises in guiding individuals with incomes over £100,000 through tax-saving opportunities and compliance, ensuring you avoid pitfalls like the loss of your personal allowance.

Optimise your financial strategy with personalised advice on pension contributions, salary sacrifice arrangements, and more. Find out more about taking control of your tax planning.

Strategy, Tax

Inheritance Tax & Estate Planning

Strategy, Tax

Secure the future of your estate with our comprehensive inheritance tax and estate planning services. We offer expert guidance in structuring your assets, minimising inheritance tax liabilities, and creating a lasting legacy for your loved ones. Trust us to provide tailored solutions that ensure your estate planning goals are achieved while preserving your wealth for future generations.

Strategy, Tax

Capital Gains Tax Advice

Strategy, Tax

Obtain valuable insights and expert guidance on Capital Gains Tax (CGT) with our dedicated advisory services. We offer comprehensive assessments and tailored advice to help you minimise tax liabilities and maximise your returns. Trust us to provide reliable and approachable CGT advice, ensuring you make informed financial decisions for optimal outcomes.

Strategy, Tax

Corporate Tax Planning

Strategy, Tax

Optimise your corporate tax position with our expert planning services. We provide tailored strategies to minimise tax liabilities, maximise deductions, and enhance overall tax efficiency for your business. Trust us to deliver comprehensive and effective corporate tax planning solutions, helping you achieve your financial goals.