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TonyTax
TonyTax, Tax Consultant
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Madam, I opened an overseas savings account in

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Dear Sir/Madam,
I opened an overseas savings account in Turkey in 2007. I have been receiving interest on this account and I have paid the Turkish tax, which is removed at source. However, I have not paid any UK tax on this account. I now wish to disclose this account to HMRC and bring my tax affairs up to date. My question is, should I send HMRC detailed transactions of the account, which I have, or should I just send them a total of the interest I have received to date?
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. Do you complete annual self-assessment tax returns? Are you a UK national?
Customer: replied 1 year ago.
I do not complete self-assessment tax returns. I am a UK national
Expert:  TonyTax replied 1 year ago.
Thanks.
Leave this with me while I draft my answer. It will take a while so please bear with me.
Expert:  TonyTax replied 1 year ago.
Hi again. It's always better to come clean over undisclosed income rather than HMRC finding out about it in another way. You should set out ihe interest and Turkish tax for each tax year in a letter to HMRC. The address to send it to is at the bottom of the page here: https://www.gov.uk/government/organisations/hm-revenue-customs/contact/income-tax-enquiries-for-individuals-pensioners-and-employees You will get credit against your UK tax liability on the interest for the tax paid on the same income in Turkey under the terms of the tax treaty between the two countries. The tax rate paid in Turkey and the tax rate you pay in the UK will determine whether you have tax to pay in the UK. HMRC will probably charge interest on any tax due at 3% per annum. They may also charge a tax geared penalty which could be as much as 100% of the tax but will probably be much less if you inform them of the income unprompted. There is some information on penalties here: http://www.taxpartnersuk.com/news_detail.php?news_id=86 I hope this helps but let me know if you have any further questions.
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15754
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
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Customer: replied 1 year ago.
Hi TonyTaxThank you very much for your advice, it has been really helpful. I have one more question. As mentioned in the original question, I have all the original transactions, however, as you might imagine, they all in the Turkish currency/language. Should I just send these to them with a covering letter and let them work it out themselves. Sorry about the delay in replying, I have been otherwise engaged.
Expert:  TonyTax replied 1 year ago.
It would be a good idea to convert the interest using the average rate for each tax year (the accepted practice) which you can find here back to 31 March 2011. For some reason, HMRC appear to have got rid of earlier years. You might call them on the number here and ask them for tax years from 2009/10 back to when you opened the Turkish account. They won't be overly happy to have to have to do the conversion work themselves .
Customer: replied 1 year ago.
Thank you again. I have had a look at the link you provided, unfortunately Turkish rates are not listed, however I will do some research online and see if I can find them by some other means.
Expert:  TonyTax replied 1 year ago.
If you click on the "View online" link under the heading "Average for the year to 31 March 2015", you will find Turkish Lira and the same applies to the other tax years:
https://www.gov.uk/government/publications/exchange-rates-for-customs-and-vat-yearly
You could use the average for the calendar year here:
http://www.ukforex.co.uk/forex-tools/historical-rate-tools/yearly-average-rates
Customer: replied 1 year ago.
Thank you again, this has been a really informative service and I will personally recommend your services to my associates.
Expert:  TonyTax replied 1 year ago.
Thanks.

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