Are you the one who is planning to move abroad and wondering ‘Can HMRC chase me abroad’ once you are moved? Far and wide, it has been observed as a common fear amongst people.
Well, the answer is yes, HMRC can approach you wherever you are liable to pay the tax bills. According to the records, 2,000 freelancers were approached by HMRC in 2023, they were told to be fined with hefty charges and penalties if they plan not to declare their income and escape from the tax bills.
An amount of £120 million was owed by these freelancers collectively. If you know someone who is fitted in the above-mentioned scenario, here is the guide to help them with the circumstances. HMRC received information on about 7.6 million offshore accounts for UK residents in 2019, demonstrating the reach of these systems.
All of your frequently asked questions like how HMRC will approach you if you are moved abroad, how much information HMRC have, or what HMRC want from you in his case.
See Our Packages
How Does HMRC Do it?
Mutual Legal Assistance Treaty helps HMRC which will be done by the foreign authorities if your information and work details are required for the tax bills. So ensure that there is no escape from the tax bills.
This comes under the case of criminal investigation as well. You better be aware of the process that leaving the UK without clearing the tax bills will be treated as a criminal case.
HMRC can chase you whether you are overseas or anywhere else, however, there is no chance of enforcing the rules and regulations of tax according to UK law in any other country. Foreign authorities will act according to their rules and set of laws for tax.
Can HMRC Chase me Abroad?
Schedule 36 notice is the way out that HMRC will follow to approach the people who are settled in Dubai or overseas.
In 2020, there was a case when an individual did not make the tax bill payment and moved to Cyprus. HMRC approached him in the year 2023 and demanded some of the financial details, the aim was to scrutinise. HMRC can demand a timeline of visits, financial details, and bank statements.
In some of the cases, people tend to make appeals to the tax tribunal and win the case of not being a resident of the UK as well as the wrong allegations.
However, HMRC does not give up and strikes back with an appeal. To which the court allows it to enquire about the tax law. This is not the case for breaching the revenue rule.
How Much Does HMRC Know About People Who Are Not in the UK?
Usually, HMRC can connect with the wealth of taxpayers whether it is declared or undeclared through sophisticated software. You might wonder about the validity of the suspicion of HMRC about the wrongdoings of people.
An estimated figure is 60,000 which is undergoing the enquiry of tax bills every year by HMRC. The government can connect over a hundred countries to get the financial details and other required information.
What Happens When HMRC Tracks You?
If HMRC suspects unpaid tax, here’s what might unfold:
- You receive a “nudge letter” or formal Schedule 36 notice, even if you’re overseas.
- They may request financial records or travel timelines to verify your tax status.
- If valid assets exist in the UK, those could be targeted for enforcement.
- If you ignore the notice, penalties escalate & may include prosecution for evasion.
What If You Don’t Pay? Does It Disappear If You Leave?
Not at all!
Unpaid HMRC debts don’t vanish.
According to Section 37 of the Limitation Act (1980), once HMRC starts an investigation, there is no time limit on how long they will chase tax debts.
Also, many countries cooperate with HMRC, meaning your new home could still see enforcement via debt collection or asset seizure.
Do You Need to Tell HMRC If You Move Abroad?
Yes! If you’re leaving the UK for at least one tax year you must inform HMRC using the P85 form. This ensures your tax record is accurate and helps determine your residency status.
You should also seek expert advice especially if non-dom status or foreign income features in your situation. And, If you get a Schedule 36 notice, respond promptly and seek professional help. Ignoring it is not an option.
Failing to update HMRC can cause:
- Incorrect tax bills
- Residency disputes
- Risk of double taxation
What If You Don’t Pay? Can You Go to Jail?
Yes – if the non-payment is linked to income tax evasion, the maximum penalty you can face as per UK law is 7 years in prison or an unlimited fine. For simple late payments, jail is unlikely, but you could face:
- Heavy interest charges
- Late payment penalties
- Legal enforcement action
The Bottom Line
Now that you have gathered a fair amount of information about ‘Can HMRC chase me abroad’, we can say that if you have an idea of any kind of ending tax payments, get in touch with HMRC as soon as possible.
Do not seek ways to escape from the tax bills, as you will be caught later or sooner. You will have to pay the tax and the heavy amount of fines and other penalties. Do not plan to leave it on chance or get involved in any kind of tax fraud with HMRC.
We hope these few minutes of reading will help you to develop a better understanding of how HMRC can approach you if you have not paid the tax bills even if you are no longer residing in the UK.
Are you looking for professional tech-savvy tax advisors and accountants in the UK to guide you? Contact us now!
Disclaimer: The information about the HMRC Chase Me Abroad provided in this blog includes text and graphics in general. This does not intend to disregard any of the professional advice.