Requirement to Correct Offshore Tax Discrepancies

A new offshore punitive penalty regime now applies respect of tax liabilities arising from offshore tax matters. Taxpayers have been given a final ‘opportunity’ to correct any errors for tax years 2016/17 and earlier before 30 September 2018. This opportunity is the ‘Requirement to Correct’ (“RTC”) and any undisclosed offshore tax matters will face a standard eye-watering 200% penalty after that date. The penalty can be reduced to 100% in certain cases. HMRC have made it clear they will target taxpayers using information they ... Read More

Playing a Let

Rent-a-room is a tax relief available individuals who let out a room/s in their home whilst occupying the property at the same time, for example to long-term lodgers, students, individuals working away from home during the week, tourists and short-term visitors – such as those visiting London to attend Wimbledon. It was originally introduced in the UK in 1992 by the Government to try and encourage individuals to let out their spare rooms. The individual is not required to own the property ... Read More

Visa Go Go!

It has been reported in the papers that there has been a sharp rise in applications for the UK’s £2M Tier 1 (Investor) Visa. Often referred to as the “Golden VISA” this allows individuals from outside of the EU to come to the UK for 40 months, with an option to extend for a further 2 years. In exchange for the Investor Visa, the applicant must invest £2,000,000 or more in UK government bonds, share capital or loan capital in active and ... Read More

Game, Set & Tax

This year’s Wimbledon winner will net a cool £2.25M in prize money. Not bad for spending a few weeks in the London sun and playing some tennis! But that’s just the cream on the strawberry as they say in SW19… The games stars could be earning endorsement income and bonuses ranging from $5-$30M a year too. Those deals could be in place for endorsing racquets, apparel, watches (usually Swiss!) or for wearing patches of brands hoping their they’ll get TV and print exposure. What ... Read More

US Passport denied due to unpaid taxes

Future passports applications will be at risk of being denied due to unpaid taxes, affecting thousands of Americans. Details have emerged from IRS officials on the enforcement of a law congress passed in 2015. In a move to make Americans settle their debts, the IRS and State department are to deny or revoke passports for taxpayers who have more than $51,000 of overdue tax debt. Taxpayer names are already being passed on to the State department by the IRS, with some taxpayers ... Read More

Overseas workdays relief – Expat Tax Back

Overseas Workdays Relief (OWDR) is a valuable tax relief available to non-UK domiciled taxpayers, which exempts employment earnings relating to duties performed overseas from a charge to UK tax provided certain conditions are met. If implemented correctly and in the right circumstances the relief can generate very big UK tax repayments. To be eligible for this relief, an individual is required to: • Be UK tax resident in the tax year following three consecutive tax years of non-UK tax residence; • be domiciled outside the ... Read More

IRS issues draft form 1040 for 2018 Returns

The IRS recently released a draft of its new Form 1040 that every American taxpayer will use to file their 2018 tax returns early next year. And as expected, the new form is significantly different than the one it replaces. As promised by Donald Trump during the 2016 presidential campaign the new form has been reduced to the size of a postcard! The new postcard sized form 1040 includes just 23 lines, a significant reduction on the 79 lines included on the ... Read More

Tax Dual Resident : being tax resident in two places at the same time

It is becoming more and more common for expat workers to commute from their home country to another country where they spend their working week. This blog post focuses on how to manage this dual resident situation where the two countries in question have a Double Tax Agreement (‘DTA’) in place. We have a lot of clients, for example, who are resident in the UK and Switzerland, Spain, Germany or the Netherlands. All of whom have a comprehensive DTA in place with the ... Read More

EBTs, Contractor Loans and HMRCs Settlement Offer

Freelance workers must declare any tax-avoidance schemes they have used by 30 September or face punitive penalties. HMRC are targeting 000’s of contractors who were paid by via loans from Employee Benefit Trusts and similar arrangements going back to 1999. HMRCs view is that these arrangements were artificial and are disguised remuneration which should be subject to income tax. It’s important that those affected come forward to settle with HMRC and avoid a loan charge on top of demands for repayment. This would be a nasty sting ... Read More

Transition Tax

Section 965 Transition Tax Many Americans with overseas business interests (i.e. business interests outside the USA) will face additional tax bills this year under the new transition tax rules enacted on 22 December 2017. Although these rules were intended to persuade the likes of Apple and Google to repatriate their historic profits to the US from low tax jurisdictions, they have also swept up other US citizens and green card holders who have more than a 10% interest in a controlled foreign ... Read More
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