News and Views

Requirement to Correct – 30 September Deadline Fast Approaching

If you have received taxable overseas income, in any form, be sure not to miss the fast approaching Requirement to Correct deadline of 30 September 2018

In recent months, many taxpayers – and agents acting for private clients – will have received letters from HMRC about overseas income and the ‘requirement to correct’ (RTC).

We very recently published a post on exactly this topic, but as we have recently been made aware of the fact that HMRC are likely to levy HUGE penalties for failure to meet these deadlines and for non-compliance with this legislation, we thought it important to re-stress that there are now less than 10 days left in which to comply.

Penalties levied will be not only for the original ‘mistake’, but also for the failure to correct on time and will be a MINIMUM of 100% of the tax due.

The ICAEW have issued the below article which goes into this in more detail, and if you believe this applies to you we urge you to take action now and delay no further. Advancements in technology mean that any non-compliance WILL be uncovered:

From the ICAEW:

We have referred to the RTC in previous news items. Here we recap on what the RTC is and what the deadlines are, and comment on the HMRC letters and on what action you might take. 

What is the requirement to correct?

The RTC is a statutory requirement for any person (including trusts) with undeclared UK tax from overseas income or assets to declare it to HMRC. It was enacted in s67 and Sch 18, Finance (No 2) Act 2017.

The RTC covers income tax, capital gains tax and inheritance tax and requires a person to correct anything which HMRC could lawfully assess as at 6 April 2017. In practice this generally means liabilities for 2015/16 and prior years. Anyone with undeclared UK tax liabilities involving offshore matters or transfers should disclose the information to HMRC by 30 September 2018 or face higher penalties introduced from 1 October 2018.

The higher penalties for failure to correct (FTC) start at 200% of the tax owed but may be mitigated down to 100% with full cooperation and disclosure. Penalties may also be charged for deliberately moving assets between jurisdictions and on the value of the asset where fraud is in point.

Although the statutory deadline for the RTC is 30 September 2018, HMRC has announced non-statutory extended time limits in three specific situations. In essence, these mean that if you have undeclared offshore-related tax and you tell HMRC by 30 September, you will have more time to make the detailed disclosure. The extended time limits depend on the circumstances – see our news item Requirement to correct – extension to 30 September deadline in certain circumstances.  

HMRC has published detailed guidance on the RTC and how to make a correction at Requirement to correct tax due on offshore assets. 

For the full article and to find out more go to

Related articles

Accountants for Amazon Sellers
Limited Companies

Amazon Sellers – top tips to ensure your long term success

Have you ever considered selling on Amazon or eBay, setting up an eCommerce business, or a little side hustle?

If this sounds like you, it seems you are not alone.

More and more people these days are selling online to boost their income, sometimes just for a bit of fun and with no higher plans, and other times in the hopes of turning this so called side hustle into their dream job and their very first foray into entrepreneurship…

We have been receiving lots of enquiries recently about accounts and tax for Amazon sellers, so I’ve recorded a little video outlining our top tips if you are thinking about giving it a go yourself…

Read More »

Find out how we can help?

Lectus scelerisque a donec tincidunt litora per eleifend eget ut sagittis conubia pharetra scelerisque dui ultricies duis parturient auctor adipiscing.


Let’s start a conversation 

    Subscribe me for updates and news from In Accountancy