Individuals with offshore assets are being warned to make sure they disclose them, or they could face new, tougher penalties.

HMRC has published proposals to allow more time to investigate when someone hasn’t declared the right amount of tax.

The new, tougher penalties take effect from 1 October 2018 and HMRC’s advice is that anyone with overseas assets needs to put their cards on the table quickly or risk much bigger fines. HMRC will prosecute the most serious cases of tax evasion.

HMRC director general for customer strategy and tax design David Richardson said, David Richardson said:“Everyone has to pay their tax, and the vast majority of people and businesses already do. It’s on their behalf that we’re cracking down on offshore tax cheats.”

These new penalties are part of the government’s drive to ensure there are no safe havens for taxpayers that seek to evade paying tax. HMRC already holds a vast amount of data on offshore assets, and this is growing all the time.

People with overseas income who aren’t sure they’ve paid the correct tax are urged to check HMRC’s guidance and contact HMRC, if necessary, before the new, tougher penalties take effect.

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