Worldwide Disclosure Facility

The Worldwide Disclosure Facility is a program offered by HMRC which allows UK taxpayers to voluntarily disclose overseas income, gains and assets that should have been reported for UK tax purposes but were not previously declared.

By making a voluntary disclosure, taxpayers could benefit from lower penalties compared to those that could be imposed if HMRC discovered the non-compliance through an investigation or audit.

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HMRC have for many years now, looked to work with global tax authorities to ensure tax transparency.

As a result, HMRC receive significant amounts of date from these authorities meaning that individuals might be at risk of an investigation where there is no realisation that a tax issue exists.

It is therefore a good idea to regularly review offshore matters, no matter how simple or complex they may be, to ensure compliance. HMRC penalties for offshore offences can be up to 300% of the tax liability, so it is imperative that reviews are undertaken. More serios issues could lead to naming and shaming and monitoring under HMRC Managing Serious Defaulters regime.

The Worldwide Disclosure Facility, or WDF, is a process of voluntary disclosure to HMRC where UK taxes are due in relation to offshore matters.

Income arising from a source in a territory outside the UK

Assets situated or held in a territory outside the UK

Activities that take place primarily or entirely outside of the United Kingdom

Anything that affects income, assets, or activity in the way described above

Also included are funds related to unpaid or omitted UK tax transferred to an offshore account or owned by an offshore account.

Call our confidential Helpline for a no obligation conversation with one of our team to discuss your tax problem and see if we can assist. This facility can be used by any person who needs to disclose a UK tax liability in relation to an offshore income or gain. If you are unsure if you meet the eligibility crate for the facility, you must seek professional advice. Please give us a call to go through your situation.