Question 1

What are the penalties for failing to correctly disclose financial information under the Worldwide Disclosure Facility

Accepted Answer

Penalties for not disclosing offshore income can be severe. It can include hefty fines and increased scrutiny from HMRC. The exact penalty amount varies depending on the nature and extent of the non-compliance. Deliberate concealment can lead to higher penalties.

Question 2

How can one establish a 'reasonable excuse' when making a disclosure to HMRC's Worldwide Disclosure Facility?

Accepted Answer

A 'reasonable excuse' is a genuine, understandable reason for not complying with tax obligations on time. Examples might include illness or loss of records due to unforeseen events. You must provide evidence to support your claim when making a disclosure.

Question 3

Which years are subject to disclosure under the Worldwide Disclosure Facility?

Accepted Answer

You need to disclose any offshore financial matters for the current tax year and up to 20 previous years. The exact time frame depends on the nature of the non-compliance, whether it was deliberate or careless.

Question 4

What steps are involved in contacting HMRC regarding the Worldwide Disclosure Facility?

Accepted Answer

First, notify HMRC of your intention to make a disclosure. Then, you have 90 days to gather documentation and submit a formal disclosure. You can find more details on the GOV.UK website.

Question 5

How does one submit a disclosure through the Worldwide Disclosure Facility?

Accepted Answer

To submit a disclosure, you need to complete the necessary forms and provide full details of the previously undeclared income or gains. This can be done through the digital service offered by HMRC. Full instructions are available in their guide.

Question 6

Can HMRC trace foreign income and bank accounts not previously declared by taxpayers?

Accepted Answer

Yes, HMRC can trace foreign income and previously undeclared bank accounts. They use information-sharing agreements with other countries and sophisticated data analysis tools to identify discrepancies in tax reporting.

Tag: Worldwide Disclosure Facility

HMRC Worldwide Disclosure Facility (WDF) for Dummies