Member Article

Tidy your taxes overseas, say experts

North East businesspeople with interests overseas are being encouraged to tidy up their tax affairs abroad or risk the possibility of coming into conflict with new HM Revenue & Customs (HRMC) legislation.

HMRC have changed its policy with regard to declarations from people working overseas to help them maximise returns from overseas earnings.

Malcolm Tindle of Bell Tindle Williamson and Les Trotter of Ex-Pat Tax Consultants have joined forces to offer advice to individuals in this situation to take protective steps to address any potential issues, and mitigate the size of their tax bill.

Tens of thousands of individuals in the region are believed to be affected by the changes, and could be caught out of their fail to file returns for earnings from any sources abroad.

Commenting on the changes, Malcolm Tindle said: “It’s not uncommon for these people to have a million pounds or more sitting in an offshore bank account, but bringing these earnings back to the UK presents a problem if they should have been declaring some or all of them here for tax assessment.

“HMRC has taken a relatively relaxed attitude towards overseas workers up to now, but with the Government needing to bring as much money as possible into the Treasury coffers to help fund its deficit repayment plans, the Revenue now has carte blanche to go after what it’s owed.”

HRMC can detect any payments of more than £10,000 coming into UK bank accounts, and lawyers and bank managers involved in financial affairs have the duty to report large sums of money entering domestic bank accounts. Many of the issues focus on residency, considering how often you return to the UK, how long you stay, where you work abroad and how long you were in employment for.

Les Trotter continues: “Each person’s National Insurance provides them with a clear view of any gaps in your contributions records over your whole lifetime, and the best move anyone who thinks they might be in the spotlight is to get HMRC to include them in the self-assessment system as quickly as possible.

“Completing an early tax declaration gives you a solid base from which to start and will highlight any mistakes that might have been made, rather than them coming to light later when far more costly penalties and charges might be applicable.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .