Jessica would like to remind our clients that UK tax is payable on all WORLDWIDE income if you are UK tax resident. HMRC are getting much stricter on the disclosure of overseas income and have imposed a deadline of 30 September 2018 for every tax payer to disclose any previously undeclared worldwide income, on which UK tax may be payable. They can investigate back as far as 12 years ago.
After this date, a huge penalty of 200% of the tax liability will apply if undisclosed income is later discovered. From 30 September 2018, over 100 countries will exchange tax data with HMRC so the risk of overseas income being discovered by HMRC will increase.
If you think that you may have worldwide income that you have never included on a tax return, please contact us as soon as possible.
Remember that overseas income can include rental income from an overseas property or employment income from a short stint working abroad.
You may also be interested in reading our blog about claiming back overseas expenses using HMRC’s flat rate.
Any questions about overseas income please let us know.