Offshore Disclosure - how much to charge and is it fair?

Offshore Disclosure - how much to charge and is...

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It's taking me a good few hours to sort out a client's offshore disclosure matters. That means a not-insignificant invoice to the client.

I feel it's just a bit tough on the client that he may have little or no tax to pay, and only needs to disclose due to his bank accounts being held in the Isle of Man (current account, everyday savings etc). He's not an offshore investor trying to make money.
Yet he will need to pay for me to determine this for him, and an accountant's charge-out rate per hour is not cheap. How are other people charging for this kind of work?

Yes, you can argue that he should have known about this income being UK taxable (he didn't) and that he should have kept better records (he didn't), but I feel its a bit of a raw deal on an average Joe.

Anyone else feel the same way?

Faerie Girl

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By clive griffiths
22nd Oct 2007 18:33

A Brave Faerie
I agree that it is difficult. In the cases handled by us, most accumulated and as yet untaxed interest has not been significant. Having said this, there have been some enormous transactions (x 4 or five figures) and it is the act of verifying all of that which is costly.

Presumably you filed online an intention to disclose. With the disclosure itself regardless of materiality in tax you must surely be looking at £750 per disclosure minimum to include bank account analysis.

Having said that, our cases brought other compromising issues to light which makes the Offshore Disclosure look like a side show!

Anybody have other views?

www.taxenquiry.co.uk

UK-Wide Investigation Support

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