HM Revenue & Customs' (HMRC) campaign to "flush out" unpaid tax on funds held in offshore bank accounts could extend its penalties to untaxed income held in the UK, a chartered accountant has said.
The authority's partial amnesty will see people who make full disclosure of previously undeclared income held offshore receive a penalty equal to ten per cent of the unpaid duty.
However, Paul Spindler of Kingston Smith's technology group told Freelance UK that the penalty will also be applied to any onshore income that has not been fully taxed.
He added that the last time the HMRC targeted offshore accounts, the country's non-domiciled rules were different, which resulted in a "vast number" of people with legitimate holdings being targeted.
There have since been significant changes to non-domiciled regulations, he said. Freelance contractors therefore need to ensure their self-assessment returns are correct and that they have reported their worldwide income properly.
"It is also worth freelancers checking their tax residency status," Mr Spindler said.
HMRC has said its latest amnesty is the "final opportunity" for taxpayers to declare their offshore income.
