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.’
African countries now have to pay a CO2 border tax when exporting to Europe and are burdened with a huge amount of paperwork before they’re even allowed to export to the EU. There is a risk that this
A new analysis by HMRC of undisclosed foreign income by UK residents published today has identified £400m of under-declared tax from offshore income, with 16% of individuals not reporting and paying
The European Union countries approved on Tuesday to keep Panama, Russia and nine other jurisdictions on their blacklist of tax havens after finding that they continue not to cooperate in this matter
The US is trying to get UAE to collaborate with American tech companies and distance itself from China in its technological collaborations especially when it comes to AI. As a result, several American