Overseas income disclosure to HMRC

If you have income from overseas, you likely have to disclose this to HMRC, even if you don’t bring it into the UK. HMRC are sending nudge letters to individuals who have offshore income they haven’t reported as they may need to pay UK tax. We can help you get things right.

What kind of income needs to be disclosed?

Any foreign income may be taxable in the UK. Rental income from an overseas property, dividends and interest and gains from selling overseas assets may also be taxable. Often forgotten about is income and gains from offshore investment funds. When the income and gains are reinvested, the owner may not see it as income to be disclosed.

Do I need to disclose the income?

Chances are, if you live in the UK, the answer is yes. Even if the income is being taxed overseas, it will likely still need to be disclosed in the UK.

If you are UK resident, it’s probable you’ll need to disclose offshore income and gains to HMRC and pay UK tax, even if the income stays overseas. This may not be the case if you’re non-UK domiciled. If you’re not sure of your residence status for tax, we can help you to figure it out.

How the disclosure works

If HMRC have sent a nudge letter, they will have explained how they want you to disclose the income. You must act quickly if you receive a letter, and we can help you through the process.

Often HMRC require individuals to report the foreign income via their Worldwide Disclosure Facility online. This involves calculating the income and gains to be reported, and self-assessing interest and penalties. This can be very complex and HMRC often give a tight deadline for the disclosure.

Need help?

We have a team of people who can help you through the reporting process, the calculations, and can talk to HMRC for you. If you have received a nudge letter, or think you may need to disclose offshore income, please speak to your usual Larking Gowen contact. You can find contact details in the Our People section of our website. Alternatively, call 0330 024 0888 or email enquiry@larking-gowen.co.uk.

Emma Walker