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Updated guidance on requirement to correct

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HMRC has updated its guidance on the ‘requirement to correct’ rules for offshore matters with more information about the precise requirements to make a disclosure by 30 September 2018, and about penalty reductions.

Examples are provided of the limited circumstances in which penalties may not be charged where information is provided later than 30 September 2018. These include where:

  • by midnight on 30 September 2018 the taxpayer notifies their intention to make a disclosure via HMRC’s worldwide disclosure facility (WDF) by registering on the digital disclosure service (DDS), provided the disclosure process is completed ‘fully and accurately’ within the 90-day time limit. Anyone wishing to register for the WDF by telephone must do so by 4pm on 28 September 2018. This means anyone registering for the DDS on or before 30 September 2018 must supply all of the required information by 29 December 2018 at the latest;
  • on or before 30 September 2018 taxpayers email a completed form CDF1 to HMRC at and inform HMRC that they wish to make a disclosure of deliberate behaviour involving offshore tax non-compliance via the contractual disclosure facility (CDF), and the outline disclosure is submitted within the 60-day time limit; or
  • HMRC has already opened an enquiry and, on or before 30 September 2018, the taxpayer informs the person conducting the enquiry that they wish to make a disclosure of offshore tax non-compliance, followed by submission of an outline disclosure to that person by 29 November 2018.

Further detail has been added about the reductions available from the standard 200% penalty (to a minimum of 100%), based on the level of co-operation and the quality of disclosure (including telling HMRC about anyone who helped enable the non-compliance). The guidance lists a number of examples of ‘telling, helping and giving’.