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Accountants highlight last chance to declare unpaid tax
Bradford accountancy firm Watson Buckle is warning anyone with assets stashed overseas that the government’s recently-announced ‘New Disclosure Opportunity’ (NDO) for unpaid tax is likely to be the last chance people will get to settle up their outstanding tax bills on favourable terms.
The level of penalty for UK firms and individuals declaring unpaid tax under the NDO, which began this month, has been set at 10% of the tax owed – which Watson Buckle tax advisor and Ripponden resident John Kinsella said was significantly less than the charge would normally be in such circumstances.
He added that anyone who did not take advantage of the opportunity, and was subsequently found to have undeclared tax liabilities, would be likely to face a penalty of at least 30%, and run the risk of criminal prosecution.
A similar amnesty – the Offshore Disclosure Facility – was offered to customers of the UK’s ‘big five’ banks in 2007. Those customers cannot now use the NDO, but will be able to make a disclosure with a penalty of 20%, which is still more favourable than normal, while at the same time demonstrating the 10% opportunity for customers of other banks and financial institutions is one which is unlikely to be repeated.
Mr Kinsella added: “The government has stated this will be the last opportunity of its kind, so anyone with undisclosed funds in overseas accounts would be well-advised to declare them now.
“Other measures to crack down on tax avoidance – including forcing UK banks with overseas subsidiaries to disclose account details and the recent deal between the UK and Liechtenstein – show that it is getting harder and harder to hide wealth overseas, and anyone who has avoided tax in this way in the past will perhaps need to re-assess their financial arrangements.”
To take advantage of the NDO, a notification of intention to disclose must be made to HMRC between 1 September and 30 November this year, for those notifying on paper, or between 1 October and 30 November for those notifying online. Disclosures can then be made on paper from 1 September 2009 to 31 January 2010, or electronically from 1 October 2009 to 12 March 2010.
For more information, contact Watson Buckle on 01274 516700 or visit www.watsonbuckle.co.uk