Date posted: 10th Sep 2021
As we reported around a year ago (https://www.cliveowen.com/2020/08/offshore-income-reporting/) HMRC are continuing to issue “nudge” letters to customers who HMRC believe have unreported income or gains from overseas.
We have seen some such letters recently for clients – one client does not have any overseas income so perhaps HMRC have him mixed up with another taxpayer (believe it or not, it happens) and another client started to receive overseas income in 2020/21 and has already provided us with details of his overseas income, as part of his 2020/21 tax return submission. The latter case shows the speed of communication between overseas tax authorities and HMRC…..
If you meet the conditions for UK residency under the statutory residence test, then invariably you will need to report your overseas income to the UK authorities even if you have left the income overseas, have reinvested the income overseas or paid foreign tax on that income. If you have undeclared overseas income, then you are best advised to declare this to HMRC before they contact you.
There are exceptions to the UK reporting of overseas income – usually for those individuals that are non-domiciled. Domicile is a complex area of taxation and you would need to speak to one of our many tax experts, if you felt that you were non-UK domiciled and could benefit from those rules.
If you have any queries regarding any undeclared income, residency or tax reporting, please give us a call or contact us here.