We were contacted by a client from south of England who had several sources of undeclared income which included foreign income. The client had not been able to declare this income for over 13 years and was anxious about how he should go about declaring this to HMRC and getting his tax affairs in order.
From our initial meeting with the client, we advised him to use the Worldwide Disclosure Facility (WDF) to disclose his undeclared income. The Worldwide Disclosure Facility (WDF) has been recently introduced by HMRC and allows taxpayers the opportunity to come forward voluntarily, disclose their undeclared income and pay the taxes due. The Worldwide Disclosure Facility (WDF) is the most economical route for making a disclosure as it means that taxpayers are able to avoid penalties applicable under the self-assessment regime.
Having gathered basic information and documents from the client, our team immediately contacted HMRC to notify them of our client’s intention to disclose undeclared through the Worldwide Disclosure Facility (WDF). Coming forward and voluntarily making a disclosure to HMRC before being prompted by them to do so is advantageous and favourable when it comes down to deciding the ultimate tax liability.
Having submitted the initial notification, our team of tax experts worked tirelessly with our client to prepare the disclosure and used their experience and knowledge to guide the client throughout the whole process. Given that it covered a period of over 13 years and included several sources of income, the disclosure was a lengthy and complicated process. Once the disclosure was completed, it was submitted to HMRC who were able to accept it without querying into it. The ultimate tax liability was much lower than initially anticipated by the client. The client was happy to have solicited our firm for his disclosure through the Worldwide Disclosure Facility (WDF).
The Worldwide Disclosure Facility (WDF) has recently been introduced by HMRC. Although it offers substantial advantages, it is still a very specialised and complex area and should be dealt with by experienced and qualified tax advisers like us.
The Worldwide Disclosure Facility comes to an end on 30 September 2018 and the reliefs and allowances available after this date will no longer be available. After this date, HMRC will charge maximum penalties for any undeclared offshore income.
If you have undeclared income and would like to make a voluntary tax disclosure, please feel free to contact us for a free and confidential consultation.