How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask TonyTax Your Own Question
TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15979
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
13905389
Type Your Tax Question Here...
TonyTax is online now

My friend in the last three years had an income from abroad

This answer was rated:
★ ★ ★ ★ ★

My friend in the last three years had an income from abroad which he did not declare. What could the penalty be?
TonyTax
Hi.

Does your friend complete annual self-assessment tax returns? What was the foreign income source?
Ask Your Own Tax Question
Customer: replied 3 years ago.

No. He was working for a PAYE company in the UK. He did not complete the annual self assesment. The source of income was his second employment with the foreign company.
Thanks.

Leave this with me while I draft my answer.
Ask Your Own Tax Question
Customer: replied 3 years ago.

Thanks. If it add any importance, the foreighn income was way below the UK's minimum wage

Hi again.

Your friend should disclose the income assuming he was UK resident for the tax years in which he had the foreign income. Depending on the country he worked in, any foreign tax paid will be deductible from the UK tax liability on the same income.

As your friend does not currently complete self-assessment tax returns, he could face a penalty for failure to notify the tax office of a potential UK tax liability. The penalties are tax based so if there is no liability to UK tax since any such liability may be covered by foreign tax paid there will probably be no financial penalty to pay.

If you look at the notes here, the penalty could be up to 100% of any UK tax liability but will be reduced in certain circumstances (see page 4).

I hope this helps but let me know if you have any further questions.
TonyTax and other Tax Specialists are ready to help you
Ask your own question now