Does Revolut Declare Your Finances To HMRC?
By
HuutiMoney
If you are wondering whether Revolut declares its account holders’ finances to HMRC, you will find the answer to your question in the following blog post. In addition to this, we will also explore the relationship between Revolut and HMRC as the UK’s tax authority, the information that may be shared across as well as the potential consequences of HMRC detecting tax evasion from a Revolut account holder.
Does Revolut Declare Your Finances To HMRC?
While Revolut does not declare your finances to HMRC on a regular basis; however, if there is an investigation conducted by HMRC in which your finances are to be looked into, Revolut may be required to share details with HMRC as part of their compliance with UK tax laws.
This includes information about your Revolut account number account activity, such as deposits, withdrawals, and transfers; which will automatically provide information regarding the money held in your account and any capital gains made through transactions.
As a financial institution, Revolut is obligated by law to report any suspicious activity that may be linked to money laundering, terrorist financing, or other financial crimes to HMRC.
In addition, Revolut is required to provide customer data to HMRC upon request, which may include names, addresses, account numbers, and transaction history. Revolut also cooperates with HMRC investigations into suspected tax evasion and other financial crimes by providing information and documentation to investigators.
In addition to this Revolut has an obligation to report account activity details to the Lithuanian tax authority. This information may then be requested by HMRC under the Standard for Automatic Exchange of Financial Account Information (FATCA).
How Does Revolut Work With HMRC Regarding Sharing Of Financial Data?
Revolut, like other financial institutions, is obligated to participate in the Automatic Exchange of Information (AEOI) framework. This framework facilitates the sharing of financial information between countries to combat tax evasion. As part of AEOI, Revolut provides relevant financial data to HMRC.
Revolut complies with the reporting obligations imposed by HMRC, which includes providing information on customers’ accounts, transactions, and balances to ensure tax compliance and prevent financial crimes.
Revolut offers users various tools and features that aid in tax reporting, such as generating statements and transaction histories. These tools aim to facilitate accurate reporting of financial activities to HMRC.
Users can declare their tax residency information within the app, which helps Revolut determine the applicable tax regulations and reporting requirements for individual users.
Revolut maintains a cooperative relationship with HMRC, ensuring open lines of communication. In case of any concerns or inquiries related to tax compliance, Revolut works closely with HMRC to address them appropriately.
What Happens If HMRC Detects Tax Evasion Through Revolut?
If HMRC detects tax evasion from someone who holds an account with Revolut, the severity of tax evasion penalties depends on the nature of the offence. For instance, income tax evasion can result in a summary conviction, which could lead to a fine of up to £5,000 or 6 months in prison. Alternatively, the maximum penalty for this offence is 7 years in prison or an unlimited fine.
Meanwhile, cheating the public revenue is a graver offence than tax evasion and has a maximum penalty of life in prison or an unlimited fine. Lastly, providing false documentation to HMRC can result in a fine of up to £20,000 or 6 months in prison.
In the UK, non-payment of taxes can have varying consequences depending on whether it was deliberate or accidental. Deliberate non-payment is a criminal offence known as tax evasion, which can result in a prison sentence of up to 7 years, an unlimited fine, or both.
On the other hand, accidental non-payment can occur due to errors in tax returns or failure to file taxes. In such cases, individuals should contact HMRC immediately to resolve the matter. While HMRC may impose a penalty, they are more inclined to set up a payment plan with the individual.
If you are unsure whether you have paid the correct amount of tax, you should contact HMRC
for advice.
Conclusion:
The above discussion helps to conclude that while Revolut may not share the details of their account holders’ finances on an automated basis with HMRC, in the event of an investigation, they are obliged to provide the account activity details requested by HMRC. This usually happens when HMRC suspects an individual of tax evasion and is conducting an investigation in their financial matters; the consequences of which will vary depending on whether the tax evasion is deliberate or accidental.
References:
Using Revolut to exchange offshore money triggers remittance. – Community Forum – GOV.UK