Undisclosed offshore income and gains - Act now!

30 September 2018 – a vitally important date for all those who have previously undisclosed offshore income and gains. This is the date by which you have to disclose income and gains and settled any tax liabilities arising. 

So, why is this so important? – Because a number of new laws become effective from that date, not least of all the potential for penalties to double from 100 to 200% of the potential lost revenue where HMRC subsequently discover undisclosed income and gains, plus a potential further 10% of the value of the overseas assets held.

How will HMRC know about previously undisclosed assets? - Using the Common Reporting Standard between the UK and 90 other countries. This is a financial information exchange mechanism so the chances are HMRC may already know about some assets.

Please get in touch if you feel you may be affected by this.

 

Budget 2017

Key points for small businesses from the Autumn budget which will come into effect from the 6th of April 2018;

  • The VAT Threshold will be frozen for two years at £85,000. Although it hasn't dropped as expected, more people will cross the threshold due to inflation.
  • The Personal Allowance is increasing from £11,500 to £11,850 for the 2018-19 tax year.
  • Basic rate income tax band will be increased from £33,500 to £34,500.
  • The marriage allowance - the amount of unused personal tax allowance which can be transferred between spouses, will increase to £1,185 a year.
  • The amount of tax free dividend income will drop from £5,000 a year to £2,000 a year.
  • Research & Development tax credits will increase from 11% to 12% to encourage investment in R&D.
  • The indexation allowance on corporate capital gains for disposals will be frozen, effectively removing relief for inflation on disposals of assets after 1st of January 2018.

National Living and National Minimum wage levels from April 2018

  • £3.70 for apprentices in their first year or under 19
  • £4.20 for those under 18
  • £5.90 aged 18-20
  • £7.38 aged 21-24
  • £7.83 aged 25 and over

For details on these points and much more, contact us on 0115 9427867 or email info@evansaccountants.co.uk