Requirement to correct – talk to HMRC if your client is currently under enquiry

Aug 07, 2018

New requirement to correct (RTC) legislation takes effect later this year from 1 October 2018.  HMRC have asked us to share their document on this legislation.

The legislation means that a UK taxpayer must declare all their foreign income and assets where there might be tax to pay to HMRC before 30 September 2018 to avoid substantial penalties. 

A recent discussion with HMRC highlighted that in scenarios where a taxpayer is under enquiry and they have an offshore matter, RTC penalties may still be chargeable if that enquiry is settled after the RTC deadline unless full disclosure is made to HMRC in advance of 30 September 2018.

Given that RTC can result in penalties of 200 percent, it is recommended that a discussion is had with the relevant HMRC Inspector in advance of 30 September.