We were recently approached by a client from North London who had several sources of income including foreign income and capital gain from trading on the global stock market. The client informed us that he had not declared his income for over 15 years and was unaware and unsure as to how he should go about getting his tax affairs in order.
Having analysed the client’s circumstances, our team of tax investigation experts advised the client to make a voluntary disclosure through the Worldwide Disclosure Facility (WDF). The Worldwide Disclosure Facility (WDF) has recently been opened by HMRC and provides an opportunity for tax payers to voluntarily come forward with their undeclared income and get their tax affairs in order. The penalties and scrutiny under Worldwide Disclosure Facility (WDF) are more advantageous in comparison to declaring income under through the self-assessment route.
Without wasting any time, our team of tax specialists notified HMRC of our client’s intention to make a disclosure under the Worldwide Disclosure Facility (WDF). Making an unprompted voluntary disclosure under Worldwide Disclosure Facility (WDF) allows for a lower penalty and scrutiny by HMRC in comparison to a disclosure that is prompted.
Once HMRC were notified, our team started working closely with the client in preparing the final disclosure which has to be submitted within 3 months from the date HMRC acknowledged our client’s initial notification.
As the voluntary disclosure was for a period of 15 years covering several different sources of foreign income and capital gains (subject to complex matching rules), the client needed our experience and expertise in preparing the disclosure. Once the disclosure was finalised, our team of tax experts made submission to HMRC’s specialist team that handles voluntary disclosures under Worldwide Disclosure Facility (WDF). To our client’s relief and delight, HMRC accepted the disclosure without any queries and the client was able to settle his tax liability through an affordable payment arrangement.
The Worldwide Disclosure Facility (WDF) is highly recommended as it offers several concessions in comparison to disclosure under traditional routes. We have few examples of prolonged disclosure, high penalties and extreme scrutiny by HMRC where clients have tried to submit disclosure under the Worldwide Disclosure Facility (WDF) either on their own or through inexperienced accountants. As Worldwide Disclosure Facility (WDF) is a specialist area, it should be dealt with by qualified and experienced professional like us.
Worldwide Disclosure Facility (WDF) will be discontinued after 30 September 2018. Any disclosures of undeclared income after this date will have to be through traditional routes and will be subject to much higher penalties.
If you have any undeclared income and would like to come forward, please feel free to contact us for a free and confidential consultation.