Worldwide Disclosure Facility (WDF)

Many people believe that because tax was paid overseas, or because no funds were brought into the UK, there is nothing further to declare to HMRC. However, that is often incorrect.

We regularly speak to people with overseas bank accounts, fixed deposits, rental properties or investments, who are surprised when a letter from HMRC lands suggesting they have undeclared overseas income.

What many people don’t realise is that countries now exchange financial information automatically under the Common Reporting Standard. As a result, HMRC may already hold details of your overseas accounts and assets. This also applies to individuals who do not usually submit tax returns.

Where overseas income or gains were not previously declared, simply correcting matters going forward isn’t always enough and can subsequently lead to enquiries from HMRC.

Making a voluntary disclosure using the Worldwide Disclosure Facility (WDF) before HMRC contacts you can significantly reduce penalties and help keep matters focused and controlled.

However, if you have received a letter from HMRC regarding your undeclared overseas income and gains, there are still ways to mitigate penalties and limit how many years HMRC can look back.

Please feel free to contact us for a confidential discussion.