Important deadline for agents approaches

Jul 24, 2017

HMRC have asked us to share their reminder that the client notification deadline is approaching on 31 August 2017. Readers should be familiar with the requirements under the client notification legislation from a number of stories in Chartered Accountants Tax News. 

Reminder from HMRC:       

“I would like to draw your attention to responsibilities you may have in relation to The International Tax Compliance (Client Notification) Regulations 2016. 

As many of you will be aware, under the UK’s Automatic Exchange of Information agreements, HMRC will soon begin to receive data automatically from 100 jurisdictions about UK tax residents who have assets in offshore accounts. This will be a profound change, providing a huge asset to HMRC in helping to tackle the minority who engage in offshore evasion. 

Before HMRC receives this information, those who advise their clients about overseas income and investments, or provide accounts overseas, will be in a better position to decide who needs to be informed of these changes.

The Regulations say that if you provide advice and services about tax or finance relating to offshore income or assets, you may need to send a Client Notification Letter to some of your clients. The letter is under HMRC branding, and aims to raise awareness among those individuals most likely to be affected when HMRC receives this information. It also makes them aware that they can still come forward and use the Worldwide Disclosure Facility if their tax affairs are not up to date.

If the rules apply, you will need to notify your clients by 3‌1 Au‌gu‌st 2017. A full guidance manual is available, which includes details of when penalties could apply.”