This week HMRC has received a detailed list of the names, addresses and account balances of every British client with an account held in Jersey with HSBC.
According to a report in the Daily Telegraph, the list identifies 4,388 British people holding £699 million in offshore current accounts, with an average amount held of £337,000.
One investment manager has more than £6 million in his account, whilst a greengrocer in the East End is understood to have more than £80,000. The report can be accessed via this link.
A spokesman for HMRC has confirmed receipt of the data and said the department is studying it.
Practical advice
If you have an undeclared account in Jersey with HSBC and wish to tell HMRC, the advice from our Team is as follows:
- Encourage you to make an unprompted disclosure to HMRC. Unprompted disclosures attract lower financial penalties on any additional tax found to be due.
- Have your accountant call the HMRC Campaigns Voluntary Disclosure Team (CVDT) on 0845 601 5041. The helpline is available Monday to Friday between 8am – 6.30pm.
- Alternatively, have your accountant write to the HMRC CVDT at Holland House, 20 Oxford Road, Bournemouth, Dorset BH8 8DZ.
The CVDT will ask for basic details including the name and address, date of birth, Unique Taxpayer Reference (UTR) and National Insurance Number. A disclosure record and payment reference number will then be allocated and a disclosure form issued.
The disclosure form has to be returned to the CVDT within three months of the date of issue, in order to qualify for a lower penalty.
Prosecution
The importance of making an unprompted disclosure not only minimises penalty terms, but also reduces the genuine threat of prosecution in the worst cases.
HMRC has a target to achieve an additional 1,000 evasion related prosecutions per year from 2014/15. In the first six months of this tax year, HMRC has already prosecuted 202 individuals against a target of 565 for 2012/13. 24 of the 202 prosecutions were for direct tax evasion.
The risk of prosecution reduces significantly if a full and accurate unprompted disclosure is made before HMRC prompts an admission.
