How to Correctly Declare Foreign Income in the UK

Here’s How Expats Can Fix It with the Worldwide Disclosure Facility

‍

Expats in the UK often overlook tax compliance, particularly failing to report foreign income or assets to HMRC. Income such as overseas rent, foreign dividends, or bank interest must either be declared in your UK self-assessment or claimed under exemptions like the FIG scheme. For guidance, explore our UK tax return for expats services.

‍

Declare or Exempt? The Importance of Reporting Your Foreign Income

‍

UK expats have two options: declare worldwide income in the self-assessment or apply for the Foreign Income Exemption Scheme (FIG). Declaring income may allow foreign tax credits to avoid double taxation. Check our non-dom tax guidance for eligibility details.

Use the Foreign Income Exemption Scheme (FIG) – If you qualify, you can exempt foreign incomes and gains from taxation in the UK for up to four tax years. To be eligible, you must have been a non-resident for UK tax purposes for ten consecutive years before the year of relocation.


‍

Even if exempt under FIG, you must report foreign income to HMRC. Omitting income without disclosure can result in penalties. Learn how to declare overseas income UK.

‍

What Is the Worldwide Disclosure Facility?

‍

The Worldwide Disclosure Facility is an HMRC scheme that encourages voluntary reporting of previously undeclared offshore income. Discover more about HMRC voluntary disclosure. WDF helps individuals and companies proactively disclose undeclared offshore income, preventing future HMRC investigations. Our tax compliance services provide expert support.

The facility became more important after 2017, when HMRC started receiving data from over 100 countries under the Common Reporting Standard (CRS). This global transparency makes it much easier for HMRC to detect offshore non-compliance.

‍

Benefits of Using the WDF

‍

Using WDF can reduce penalties and provide certainty about your tax position, giving peace of mind for UK expats. Voluntary use of WDF can reduce penalties and secure your HMRC compliance. Contact our UK tax advisors for tailored guidance.

‍

Disclosures require accurate reporting of previous tax years, sometimes up to 20 years, depending on circumstances. Our Worldwide Disclosure Facility

What Does the Disclosure Process Involve?

‍

Here's a simplified overview:


‍

1. Notify HMRC that you wish to make a worldwide disclosure.
2. Gather financial information for each tax year.
3. Calculate your tax liability for each year (a tax adviser can help here).
4. Submit your disclosure and pay what you owe, including any interest and penalties (which are often reduced for voluntary disclosures).

‍

Don’t Wait for HMRC to Find You

‍

HMRC has ramped up its use of data matching, international bank account information, and property letting platforms (like Airbnb and letting agents) to identify undeclared foreign income. The longer you leave it, the higher the risk and potential cost.

‍


Making a proactive disclosure via the WDF is the smart, responsible way to correct past errors and avoid the stress and penalties of an HMRC investigation.

‍

How We Can Help

‍

As tax specialists working with foreigners in the UK, we help expats navigate the Worldwide Disclosure Facility and Self-Assessment process with confidence and clarity. Our services include:


‍

• Reviewing your historic foreign income
• Calculating any tax owed and preparing backdated returns
• Managing the disclosure to HMRC on your behalf
• Negotiating payment arrangements, where appropriate
• Ensuring ongoing compliance for future tax years


‍

Wherever you receive income from, our team can manage the entire process remotely, with minimal disruption to your life abroad.

‍

Final Thoughts

‍

HMRC’s access to international financial data means that undisclosed foreign income is more likely to be discovered than ever before. If you’ve missed declaring any overseas income or assets, don’t wait for a letter from HMRC. 



Using the Worldwide Disclosure Facility now can save you stress, money, and potential legal trouble.


You’ve made the UK your home—let us help you make your tax affairs just as settled