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focusHMRC have issued updated guidance on the Requirement to Correct (RTC) legislation.

The purpose of the RTC legislation is to require those with undeclared offshore tax liabilities (Income Tax, Capital Gains Tax or Inheritance Tax for the relevant periods) to disclose those liabilities to HMRC on or before the 30th September 2018.

The legislation sets out the different levels of mitigation for penalties for failure to correct, and extends the deadline by 90 days in some circumstances. HMRC have now said that they will not charge penalties where they have not received all information by the 30th September 2018 deadline, to anyone who:

* Was registered to use the Worldwide Disclosure Facility by the 30th September 2018 and makes the disclosure by the 29th December 2018.

* Where HMRC are already enquiring into their affairs, informs HMRC by the 30th September that they wish to make a disclosure of offshore tax non-compliance and submits an outline disclosure by the 29th November 2018.

* Informs HMRC by the 30th September 2018 that they wish to make a disclosure of deliberate behaviour involving offshore tax non-compliance via HMRC’s Contractual Disclosure Facility (CDF) process.

If the disclosure is not voluntary the minimum penalty level will be increased from 100% to 150% of the tax not corrected. The level of penalty mitigation they will offer will depend on how much assistance is given to them by the taxpayer:

* For telling: up to 30% of the maximum available reduction will be given

* For helping: up to 40% of the maximum available reduction

* For giving access to records: up to 30% of the maximum available reduction.

The message is clear …

We have set out above what is only a brief summary of some points that involve quite complex rules – always take appropriate advice.

Barry Fleming & Partners has grown from a tax advisory background into a broader business that encompasses investment management. Both things matter for wealth management, retention and creation. That expertise makes the company strikingly different from others.

This capability allows Barry Fleming and Partners to use its strength in tax advice to take a 360-degree-view of a financial situation to give much broader, more comprehensive advice.

We bring together up to the minute tax, estate, investment and retirement planning advice to create individual, ‘joined up’ financial strategies. This allows our clients to understand and have confidence in how they can best control, retain, and build their assets and income to achieve their objectives with least risk.

A high level of service is key to our long-term client relationships. We work collaboratively. That means our clients can benefit at all times from having ready access to our team of financial planners.

Barry Fleming & Partners are an independent financial advisor specialising in ISA’s, Pensions, Tax, Trusts, Estate Planning, Inheritance Tax Planning (IHT) and other Financial Planning areas. Please don’t hesitate to call on 01488 608 686 and ask to talk to one of our financial advisors. Alternatively use the contact form on our home page.