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bigduckontax
bigduckontax, Accountant
Category: Tax
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I have inhertited a large some of money (non uk Family) 6 years

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I have inhertited a large some of money (non uk Family) 6 years ago offshore. The funds have been sitting in a offshore account and I have recently discovered I have not declared circa £25,000 of interest income which is due to HMRC over the period (Calculated based on 20% UK Tax band).
What are the potential fines and what documentation do I need to provide to HMRC to settle the overdue income tax?
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. You must make your peace with HMRC and declare this income for the relevant tax years. You will have to throw yourself on their mercy, but be warned, mercy is a commodity in very short supply in that Department. Firstly they will charge you interest on unpaid tax, this is only fair, after all HMRC pay interest on overpaid tax. They can also impose penalties from the 10/11 tax year which can rack up to over 1.5K a tax year, but if you come clean they may, and I say may, not impose these. A guide to penalties you can find here: http://www.rossmartin.co.uk/penalties-a-compliance/114-penalties/721-tax-penalties-self-assessment-late-filing-a-payment-from-201011 All you need to do is send a letter to your tax office explaining the situation and setting out the interest received by each tax year. I am so sorry to have to rain on your parade.
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Customer: replied 1 year ago.
Yes its time to come clean and make peace. Will there be any challenges once I have paid any penalties in bringing the offshore money to a UK bank account?
Expert:  bigduckontax replied 1 year ago.
No, but warn your bank of the incoming moneys and their source to preclude any money laundering inquiries a large sum transfer might attract. Thank you for your support.

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