As you may be aware, HM Revenue and Customs (HMRC) has been stepping up its efforts to claw back undeclared tax as the Government looks to reduce the deficit.
This has led to a number of campaigns over the past year, targeting specific sectors where HMRC believes individuals have undeclared income and, therefore, unpaid tax.
More recently, a whistleblower has leaked a list of the names, addresses and account balances of 4,388 British clients of HSBC with offshore accounts held in Jersey to HMRC. A total of £699 million is held in these accounts, equating to an average of £337,000 per person.
While HSBC is investigating how this data came to be leaked in this way, HMRC has confirmed that it is currently studying the information to identify any previously undisclosed accounts.
If you have an undeclared account in Jersey with HSBC then it is advisable to make a disclosure to HMRC as soon as possible. Making an unprompted disclosure is likely to result in a reduced financial penalty if HMRC then finds that additional tax is due. If HMRC catches up with you at a later date, the penalties will be much higher and you could even face prosecution if the matter is deemed to be particularly serious.
This is where we can help. Our tax team can assist you with making a full and accurate disclosure to HMRC at the earliest opportunity, as well being able to negotiate with HMRC on your behalf. We can also help ensure that your tax affairs are in order, including legitimately minimising your tax liability.
As with any tax matter, it is important to act sooner rather than later – don’t wait for the taxman to come knocking.
To find out how we can help you, please contact us.