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The "Requirement to correct" will affect a very wide range of taxpayers and their advisers. It will affect anyone whose tax affairs involve income or assets outside the UK and their UK tax filings up to 5 April 2017 for these offshore matters are not perfect, from 30 september 2018 they face stringent new penalties for non-compliance.

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By the time the OVDP ended in September 2018, more than 56,000 taxpayers successfully completed the program, paying more than $11.1 billion in back taxes, penalties and interest.

Taxpayers with current and historic offshore financial connections should urgently review their UK tax affairs including making sure that any historic planning (including avoidance schemes) with an overseas element is reviewed to check that it has been correctly implemented. If errors are identified they should be rectified by 30 September 2018.

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As part of the Offshore Voluntary Disclosure Program, taxpayers are required to address their failure to file the required Report of Foreign Bank Accounts, commonly referred to as the FBAR form. Following is an update to our prior article, FBAR Penalties: The significant impact taxpayers Can Face When Failing to Report Foreign Financial Accounts.

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The Corrections: taxpayers required to address errors in offshore tax reporting by 30 September 2018 or face stringent new penalties HMRC now have a nuclear legislative weapon against offshore non-compliance, in the form of the ‘requirement to correct’ (RTC) legislation.

03 January 2017. If your affairs involve income or assets outside the UK and your UK tax filings up to 5 April 2017 in relation to these offshore matters are not 100% perfect then, from 30 September 2018, you face stringent new penalties of up to 200% of the tax due.

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