Huge hike in number of taxpayers disclosing unpaid tax on offshore income

The number of wealthy UK taxpayers using HMRC’s worldwide disclosure facility to admit to unpaid tax on offshore assets has jumped 35% from 3 301 to 4 443 in the past year according to information obtained by law firm Pinsent Masons.

The firms says the increase is likely to be due to an HMRC one-to-many campaign warning taxpayers that it has received information from tax authorities abroad for example through the common reporting standard.

Pinsent Masons says the letters will have prompted many taxpayers to confess that they owe additional tax – and that those who ignore the letters are inviting an investigation.

Sophie Warren a tax investigations expert at Pinsent Masons said: ‘The common reporting standard has changed the game regarding offshore income sources. Increasingly HMRC already has all the information it needs to prosecute thousands of people. These warning letters...