UK limited company contractors may want to seek the advice of an accountant now that the coalition has struck a deal with the Swiss government in a bid to win the battle against offshore tax evasion.
The ground-breaking deal was signed last week and HMRC hopes it will raise billions of pounds for the Treasury.
Umbrella company contractors will be keen to get their tax affairs in order and this could lead to more work for contractor accountants. Brits found to have been salting away their cash in Swiss bank accounts will face a one-off penalty of between 19% and 34%to settle their past tax liabilities.
The permanent secretary for tax at HMRC, Dave Hartnett, said the world is closing in around tax evaders. He also warned that the Revenue will be chasing people who remove their funds from Switzerland in the hope of finding another tax haven elsewhere.
David Gauke, the exchequer secretary, said the Anglo-Swiss agreement is an excellent one and it tackles a problem that a lot of people thought would go unsolved. By working in harmony with the government of Switzerland, we have come up with an effective solution that will reap benefits for both countries as well as recovering billions of pounds in previously unpaid income tax.
However, some experts have suggested that tax evaders who want to come clean would be better off taking advantage of the Liechtenstein Disclosure Facility which covers all of a person’s global assets and offers immunity against prosecution for offences relating to tax.
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