Offshore disclosure facility

HMRC announced on 17th April 2007 that they are offering the opportunity for people with an offshore account that is in any way connected to a loss of UK tax to come forward and voluntarily disclose this information. For a limited period, those coming forward will face only a 10 per cent penalty on top of the tax and interest due.

This initiative known as the Offshore Disclosure Facility (ODF) has been rumoured in the press for months, and widely reported as an amnesty, although that is not correct as the under-declared tax and interest have to be paid.

 
First, banks are writing to customers with offshore accounts to tell them about the ODF, but HMRC are not taking any steps to publicise the ODF beyond their initial press release and information for onshore disclosure on similar terms.
 
The professional bodies issued joint guidance for their members, which the Tax Faculty has published as TAXGUIDE 3/07, it can be found on the ICAEW website at ICAEW.com. The guidance covers, among other things:-
 
  • The scope of the ODF.
  • The parallel facility, on the same terms, for onshore.
  • The strict timetable – notification of the intention to disclose must be made by 22nd June 2007 and disclosure by 26th November 2007.
  • Issues around the competence and experience of members.
  • The consequences of non-disclosure.
  • Notification issues, including online notification.
  • Disclosure issues, including the 20 year time limit, the use of estimates and completing the forms.
  • Payment – this is required in full by 26th November 2007 unless a case can be made for deferred payment terms.
 
If you would like any further information or advice please call us on 01536 713555.

more from General Information

Revised Treatment of VAT incurred on home computers
Revised Treatment of VAT incurred on home computers made available by employers to their employees
Artic Systems case - The Implications
“Artic Systems” may lead to changes in the taxation of family companies
Rates of interest on tax
On 5th July 2007 bank rate increased from 5.5 per cent to 5.75 per cent. This affects the rates of interest on unpaid tax and overpaid tax
Offshore Disclosure
The door has closed on the offshore disclosure initiative which allowed for a reduced penalty regime for those who voluntarily notified that items had been missed off tax returns by the deadline date of 22 June 2007.
Powering On
Revenue & Customs is continuing its update and, at times, radical overhaul of its existing powers.
New fuel advisory rates from 1st August 2007
HMRC announced on 27 June that the advisory fuel rates for company cars will increase from 1 August 2007
Jones v Garnett - House of Lords decision
The House of Lords has found in favour of Geoff Jones in the landmark case Jones v Garnett.
Anti Avoidance Expansion
Revenue & Customs has also announced the enlargement of the Joint International Tax Shelter Information Centre – better known as JITSIC
Non-Residence pages on Returns
The latest self-assessment tax return (2006/07) contains a number of changes to the non-residence pages
Spotlight on Landlords
There has been a raft of press commentary about a planned Revenue & Customs crackdown on landlords
Revenue rethink
The government has tabled amendments to the new rules for charging penalties when taxpayers make errors in their tax returns
Jones v Garnett update
The ‘husband and wife’ case of Jones v Garnett has been heard at the House of Lords
When less is more
Data security issues could soon be a thing of the past
Proof positive
Corporate identity theft is a growing problem
IT system costs anger MP's
Revenue & Customs has been attacked by MP’s over the cost of an IT system that ended up costing nearly three times the agreed sum
Revenue unveils 'get tough' strategy
Revenue unveils 'get tough' strategy for tax cheats and vowed to adopt a 'no compromise' stance
Revenue poised to nab amnesty dodgers
Revenue & Customs is preparing to pursue around 40,000 individuals.
ICAEW spearheading move to protect term 'accountant'
The ICAEW is putting its full weight behind the campaign to get legal protection for the term 'accountant'.
Sage Line 50 Version 9
Sage has recently announced that they will be ceasing to support Version 9
Income Tax Rates
Government proposes to reduce the basic rate of income tax
VAT Fuel Scale Charges
HMRC intends to change significantly the VAT fuel scale charges payable by businesses
Directors' Liability - Personal Guarantees
Personal Guarantees
Jones v. Garnett
Jones v. Garnett - The House of Lords is about to consider the tricky question of whether dividends paid by a company
Declaring Cash on entering or leaving the UK
Declaring Cash on entering or leaving the UK
Offshore disclosure facility
Offshore disclosure facility
CFW Accountants

Northants Chamber of Commerce Member  ACCA  ICAEW
privacy statement - terms of use

CFW Accountants and Business Advisers