Offshore Disclosure
Discussion
The Revenue have the powers to go back 20 years regarding defrauded tax amounts - and they have stated that this is what they will be doing for those who fail to own up by 22 June that they had income deriving from overseas investments. Regarding bank accounts - they already know who the individuals are because the banks have now provided them with the necessary details.
The Revenue are running an "amnesty" at the moment whereby anyone who voluntarilly discloses these underpaid tax amounts by 22 June will only have to pay a Penalty based on 10% of the underdeclared tax. The normal penalty can be as high as the unpaid tax amount - effectively doubling what is due.
All the unpaid tax will still be payable and interest will be charged on the late tax payments.
The Revenue are running an "amnesty" at the moment whereby anyone who voluntarilly discloses these underpaid tax amounts by 22 June will only have to pay a Penalty based on 10% of the underdeclared tax. The normal penalty can be as high as the unpaid tax amount - effectively doubling what is due.
All the unpaid tax will still be payable and interest will be charged on the late tax payments.
Eric will this affect any of these so called companies who claim to take my freelance money (gross) and give it back to me in the form of a minimal salary and money from some off-shore thingamybob. It leads to about 78% return on your money - net of fees.
http://www.asmg.co.uk/about-us.htm for example.
http://www.asmg.co.uk/about-us.htm for example.
freddies_dad said:
Eric will this affect any of these so called companies who claim to take my freelance money (gross) and give it back to me in the form of a minimal salary and money from some off-shore thingamybob. It leads to about 78% return on your money - net of fees.
http://www.asmg.co.uk/about-us.htm for example.
Depends how it's distributed. Does not affect mine as it's based around loaning monies back from IOM trust funds. I guess you need to explain how asmg get the money back to you.http://www.asmg.co.uk/about-us.htm for example.
Eric .. that scheme I talked about a while back seems to hold water and is not affected by the latest IR manouvering ...
freddies_dad said:
arfur said:
I guess you need to explain how asmg get the money back to you.
Unfortunately I don't know - I don't use them but was thinking of. A friend does use them but he doesn't exactly know either.I wouldn't really know. to be honest. If I was involved in one of these complicated schemes I would want to know categorically from the scheme operator whether it is caught by these provisions and if so, who has the responsibility to disclose the existence of the income to the Revenue by 22 June (it's only 11 days away).
If they are happy that the scheme is not caught, I would still like to know categorically why they think it isn't discloseable income.
If they are happy that the scheme is not caught, I would still like to know categorically why they think it isn't discloseable income.
I think the whole scheme hinges on whether the money you end up being paid is genuine income or not. I think these schemes sail extremely close to the wind and are ripe for a HMRC attack - although not maybe under the 22 June "Amnesty" scheme which is what I was on about.
Initially, this is being used to flush out UK tax resident individuals who have held bank accounts in non-UK banks and who may have "neglected" to enter any details of interest they may have received on these accounts on their Srelf Assessment tax returns..
However, the Revenue will also be after those with foreign owned properties from which they derive rental income and which hasn't been disclosed on a tax return to date either. The 22 June "Amnesty" applies to that type of income too.
Initially, this is being used to flush out UK tax resident individuals who have held bank accounts in non-UK banks and who may have "neglected" to enter any details of interest they may have received on these accounts on their Srelf Assessment tax returns..
However, the Revenue will also be after those with foreign owned properties from which they derive rental income and which hasn't been disclosed on a tax return to date either. The 22 June "Amnesty" applies to that type of income too.
Eric Mc said:
I wouldn't really know. to be honest. If I was involved in one of these complicated schemes I would want to know categorically from the scheme operator whether it is caught by these provisions and if so, who has the responsibility to disclose the existence of the income to the Revenue by 22 June (it's only 11 days away).
If they are happy that the scheme is not caught, I would still like to know categorically why they think it isn't discloseable income.
Mine is disclosed. It shows up as a BIK each year on tax return. So salary - taxes then BIK - taxable value of that then fees .. I get the balance. The BIK rises each year for 3 years when the fund phoenixes and then resets. All in all 78-80% comes back to me after all outgoings.If they are happy that the scheme is not caught, I would still like to know categorically why they think it isn't discloseable income.
Eric Mc said:
The Revenue have the powers to go back 20 years regarding defrauded tax amounts - and they have stated that this is what they will be doing for those who fail to own up by 22 June that they had income deriving from overseas investments. Regarding bank accounts - they already know who the individuals are because the banks have now provided them with the necessary details.
The Revenue are running an "amnesty" at the moment whereby anyone who voluntarilly discloses these underpaid tax amounts by 22 June will only have to pay a Penalty based on 10% of the underdeclared tax. The normal penalty can be as high as the unpaid tax amount - effectively doubling what is due.
All the unpaid tax will still be payable and interest will be charged on the late tax payments.
in an uncommitted comment, would you beleive this from the Govt that they do know or is it a bluff.The Revenue are running an "amnesty" at the moment whereby anyone who voluntarilly discloses these underpaid tax amounts by 22 June will only have to pay a Penalty based on 10% of the underdeclared tax. The normal penalty can be as high as the unpaid tax amount - effectively doubling what is due.
All the unpaid tax will still be payable and interest will be charged on the late tax payments.
I understood its more of a case of when the funds (large funds) are moved that they appear on the radar....
Eric Mc said:
So you are being taxed under the BIK rules relating to interest free or low interest loans loan?
No. all funds are directed into a trust fund in my name in the IOM. I draw down on this as a loan from the trust. There is no benifit in repaying the loan as it's mine in the 1st place. Every 3 years the trust is phoenixed so that the value is zero again. So if you draw 100k in each yr then that's 1k in BIK tax 1st yr, 2k next, 3k next, then zeroed, 1k etc etcThe payment dates are very staggered, so only 7 distributions per year and on top of this is a PAYE salary of 12k payable monthly in arrears
I still don't understand the tax you are paying under the BIK rules. What type of BIK is being taxed?
Regarding the prior post, the Revenue now have details of 400,000 indiviudals who have failed to disclose offshore interest amounts. They are exzpecting all 400,000 individuals to notify them formally by 22 June.
The banks were ordered by the courts to disclose this information back in April. This they did, and they then wrote to all their affected customers telling them what they needed to do next. I am looking at just such a letter right now.
Regarding the prior post, the Revenue now have details of 400,000 indiviudals who have failed to disclose offshore interest amounts. They are exzpecting all 400,000 individuals to notify them formally by 22 June.
The banks were ordered by the courts to disclose this information back in April. This they did, and they then wrote to all their affected customers telling them what they needed to do next. I am looking at just such a letter right now.
Out of interest, what exactly is the info that the banks have passed on to the IR. Is it the UK banks which operate an offshore outfit where they have passed a sum of money to the UK part of the bank, or is it where any amount of money has been transferred to the UK from a foreign bank, however small?
James.
James.
It is the names and addresses of UK residents who possess bank accounts based in offshore territories.
The Revenue are now waiting for the 400,000 individuals whose names were supplied to voluntarilly notify confirmation of this to the Revenue. So far about 6,000 have done so. The deadline for this notification expires in ten days.
The Revenue are now waiting for the 400,000 individuals whose names were supplied to voluntarilly notify confirmation of this to the Revenue. So far about 6,000 have done so. The deadline for this notification expires in ten days.
Eric Mc said:
It is the names and addresses of UK residents who possess bank accounts based in offshore territories.
The Revenue are now waiting for the 400,000 individuals whose names were supplied to voluntarilly notify confirmation of this to the Revenue. So far about 6,000 have done so. The deadline for this notification expires in ten days.
so they may have names but that in itself does not mean they are all liable to pay any additonal tax as they may have declared it or be exempt.The Revenue are now waiting for the 400,000 individuals whose names were supplied to voluntarilly notify confirmation of this to the Revenue. So far about 6,000 have done so. The deadline for this notification expires in ten days.
I dont think the IR have the resources to investigate, prove and recover this 400,000 possible cases withing a reasonable time frame. I think the cost and time -v- benefit would be too high. I still think its a bluf.
It might be - but would you be the one who is willing to take the risk? My hunch is that they will go after the serial or large offenders i.e the ones where they might get the highest yield for effort expended. However, judging from their atitude to normal tax enquiries, size is not the only criteria.
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