The number of individuals confessing to HMRC about unpaid taxes on offshore income surged by 22 per cent in 2024, with 5,643 taxpayers coming forward compared to 4,630 in 2023, according to research by Lubbock Fine.
This increase highlights the growing pressure on taxpayers to address undeclared offshore income, as HMRC intensifies its efforts to combat tax non-compliance. Those coming forward have used HMRC’s online Worldwide Disclosure Facility (WDF), which allows individuals to voluntarily disclose unpaid taxes on foreign income. By using the WDF, taxpayers can potentially reduce penalties and avoid criminal prosecution, provided they make a full and timely disclosure.
Graham Caddock, Tax Investigations Director at Lubbock Fine, says: ‘Handled correctly, a tax disclosure to HMRC can often be resolved without incurring any penalties at all.’
A growing web of data sharing with the tax office
HMRC’s crackdown has been bolstered by the increasing flow of financial data from international jurisdictions, including popular tax havens like the Cayman Islands, Bermuda, and the British Virgin Islands. This data also covers rental property income from countries such as Spain, France, and Greece.
Using its sophisticated Connect database, HMRC cross-references this information with UK tax returns and other data to identify discrepancies. When irregularities are detected, HMRC issues “nudge letters” to taxpayers, urging them to come clean before investigations are initiated.
By 2027, HMRC is expected to further expand its reach by gaining access to cryptocurrency account data from numerous countries, with could trip taxpayers up. As Caddock says: ‘Taxpayers often wrongly assume that cryptocurrency income and gains are not taxable in the UK. Severe penalties await those who ignore HMRC’s warnings.’
The IRS has long investigated taxpayers who evade federal tax obligations by concealing taxable income in offshore tax havens or jurisdictions that provide for financial secrecy. Historically, the agency
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Press Release from Carey Olsen, Friday 11 July, 2025. Carey Olsen’s corporate teams in Jersey and Guernsey are representing Grant Thornton Limited, Channel Islands (“Grant Thornton Channel