Do you need WDF advice and help?

The WDF can be used by anyone with overseas assets and have not disclosed this to HMRC.  Overseas assets, with unpaid or omitted tax, can be classed as:

• Income arising from a source in a territory outside the UK
• Assets situated or held in a territory outside the UK
• Activities carried on wholly or mainly in a territory outside the UK
• Anything having effect as if it were income, assets or activities of a kind described above

This also includes any unpaid or omitted UK tax that has been transferred to a territory outside the UK or are owned in a territory outside the UK.

If you are suspected by HMRC or they have been told of assets or funds that you have disclosed in your WDF to be partly or entirely made up of criminal property, then your application can be refused.  Any disclosures under suspicion will be referred to an investigation officer to help decide if your WDF can be accepted.

Tax Advisory UK always recommend seeking professional advice on a WDF enquiry and we can provide one of the UK’s highly qualified Tax Investigators to speak with.

Registering for the WDF

You can notify HMRC of your disclosure by using the Digital Disclosure Service (DDS).

Once this is completed you have 90 days to:

• gather the information you need to fill in your disclosure
• calculate the final liabilities including tax, duty, interest and penalties
• fill in your disclosure, using the unique disclosure reference number (DRN) you are given when you notify

Tax Advisory UK always recommend seeking professional advice on a WDF enquiry and we can provide one of the UK’s highly qualified Tax Investigators to speak with.

The terms of the WDF

You must:

• be eligible
• make a full disclosure of all previously undisclosed UK tax liabilities
• calculate interest and penalties based on the existing legislation

If you fully co-operate with HMRC they will not impose higher penalties and will not publish details of your disclosure which could harm your reputation.

If you fail to make a complete or accurate disclosure or refuse to send in more information, HMRC may:

• apply a higher penalty than they would if you had provided the information voluntarily
• open a civil or criminal investigation
• publish your details on the GOV.UK website

You may still be liable for criminal prosecution.

How many years do I have to disclose?

The number of years that you disclose depends on the behaviour associated with your self-assessment (SA) which could range from 4, 6 or 20 years.

Tax Advisory UK recommends seeking a  professional tax specialist if you’re unsure about how to self-assess your behaviours or calculate the number of years to disclose.

Have you received HMRC “nudge letter”?

HMRC have been sending “nudge letters” to taxpayers who they may have been notified as having oversea assets.  This is not a new tactic and it means HMRC can contact huge amounts of taxpayers in a short period of time.

The purpose of the letter is to:

• explain that HMRC has information on an offshore asset held by the recipients
• request confirmation that your tax affairs are up to date
• ask for a signed declaration that you know of no inaccuracies in your returns
• request confirmation that a tax disclosure will now be made

What you should do if sent HMRC letter?

If HMRC contact you then it is highly possible they have information about your overseas assets and that you may not have disclosed them.  They have the authority to request your company books and records and conduct a tax audit, looking back up to 20 years.  If you receive a WDF letter then you must contact a tax investigation specialist immediately for advice.

A tax investigation specialist will be qualified and experienced with corresponding with HMRC to gather accurate and important information about your case.  Complete honesty with your tax investigator will ensure there will be no surprises as an incorrect declaration to HMRC can lead to an investigation.

Contact Tax Advisory UK and we will arrange a meeting with some of the UK’s best WDF Tax Investigators who will be happy to help you with your WDF enquiry.  Please call 07908 074954.