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HMRC internal manual

Compliance Handbook

Offshore matters: requirement to correct certain offshore tax non-compliance: how the person can correct their offshore tax non-compliance

You must check the date from which these rules apply for the tax or duty you are dealing with. See CH123050 for full details.

Offshore tax non-compliance can be corrected on or before 30 September 2018 in a number of ways.

Failure to notify chargeability

This can be corrected by giving the requisite notice to HMRC (unless before doing so the person has received a notice requiring the person to make and deliver a tax return) and giving HMRC the relevant information by any of the following methods

  • by making and delivering a tax return to HMRC,
  • using the digital disclosure service or any other service provided by HMRC as a means of correcting tax non-compliance,
  • communicating it to an officer of HMRC in the course of an enquiry into the person’s tax affairs, or
  • using any other method that has been agreed with an officer of HMRC. However this cannot extend the deadline for correcting.

Failure to make or deliver a return

This can be corrected by

  • making or delivering the requisite return or document to HMRC,
  • using the digital disclosure service or any other service provided by HMRC as a means of correcting tax non-compliance,
  • communicating it to an officer of HMRC in the course of an enquiry into the person’s tax affairs, or
  • using any other method that has been agreed with an officer of HMRC. However this cannot extend the deadline for correcting.

Correcting an inaccurate return or document

This can be corrected by

  • amending the document or delivering a new document to HMRC,
  • using the digital disclosure service or any other service provided by HMRC as a means of correcting tax non-compliance,
  •  communicating it to an officer of HMRC in the course of an enquiry into the person’s tax affairs, or
  • using any other method that has been agreed with an officer of HMRC. However this cannot extend the deadline for correcting.

The penalty position

If the person corrects their position on or before 30 September 2018 then the tax and interest will be collected as normal and the existing penalty rules will apply.

The person does not have to have provide a full narrative or computation to correct their position but must have provided HMRC with relevant information that enables or assists us to calculate the offshore tax due.

Section 67 and Schedule 18 Finance Act (No 2) 2017