Providing tax information to HMRC 💰🏦

(Thomas Purchas) #1

Hello! :wave:

I’m Thomas. I’m a Backend Engineer here at Monzo, working in the Financial Crime team.

We wanted to let you know that we’re required to provide tax information to HMRC for users that are tax resident in certain countries. Over the next week we’ll be sending an email to everyone who is tax resident in one of these countries so they have time to update their details.

If you’re tax resident in one of these countries, then you should receive an email at some point this week. If you have any questions then I’m happy to answer them for you.

(Marcus Nailor, Hot Coral Detective) #2

Are you able to disclose which countries? :slight_smile: (Just curious)

(Thomas Purchas) #3

Yup! They are:

:andorra: Andorra, :argentina: Argentina, :aruba: Aruba, :australia: Australia, :austria: Austria, :azerbaijan: Azerbaijan, :barbados: Barbados, :belgium: Belgium, :belize: Belize, :brazil: Brazil, :bulgaria: Bulgaria, :canada: Canada, :chile: Chile, :cn: China, :colombia: Colombia, :cook_islands: Cook Islands, :croatia: Croatia, :curacao: Curacao, :cyprus: Cyprus, :czech_republic: Czech Republic, :denmark: Denmark, :estonia: Estonia, :faroe_islands: Faroe Islands, :finland: Finland, :fr: France, :de: Germany, :ghana: Ghana, :gibraltar: Gibraltar, :greece: Greece, :greenland: Greenland, :guernsey: Guernsey, :hong_kong: Hong Kong (China), :hungary: Hungary, :iceland: Iceland, :india: India, :indonesia: Indonesia, :ireland: Ireland, :isle_of_man: Isle of Man, :israel: Israel, :it: Italy, :jp: Japan, :jersey: Jersey, :kr: Korea, :latvia: Latvia, :lebanon: Lebanon, :liechtenstein: Liechtenstein, :lithuania: Lithuania, :luxembourg: Luxembourg, :malaysia: Malaysia, :malta: Malta, :mauritius: Mauritius, :mexico: Mexico, :monaco: Monaco, :montserrat: Montserrat, :netherlands: Netherlands, :new_zealand: New Zealand, :niue: Niue, :norway: Norway, :pakistan: Pakistan, :panama: Panama, :poland: Poland, :portugal: Portugal, :romania: Romania, :ru: Russia, :samoa: Samoa, :san_marino: San Marino, :saudi_arabia: Saudi Arabia, :seychelles: Seychelles, :singapore: Singapore, :st_kitts_nevis: St Kitts and Nevis, :st_lucia: St Lucia, :st_vincent_grenadines: St Vincent and the Grenadines, :slovakia: Slovak Republic, :slovenia: Slovenia, :south_africa: South Africa, :es: Spain, :sweden: Sweden, :switzerland: Switzerland, :tr: Turkey, :uruguay: Uruguay, :us: United States of America.

You can find these on HMRC site here, if you’re really interested the legislation can be found here (it’s a long read, and not exactly a page turner).

(Is Santa here yet?) #4

I really hope that was copy and paste and you didn’t have to type them all :scream:

(Colin Robinson) #5

I think there’d be lots of emoji flags if it was manually typed knowing Monzo :wink:

(Thomas Purchas) #6

This is a good idea…

(Chong) #7

What if I don’t pay taxes solely because I’m a student studying abroad. Do I still need to register myself as a tax resident?

(Colin Robinson) #8

:andorra:, :argentina:, :aruba:, :australia:, :austria:, :azerbaijan:, :barbados:, :belgium:, :belize:, :brazil:, :bulgaria:, :canada:, :chile:, :cn:, :colombia:, :cook_islands:, :croatia:, :curacao:, :cyprus:, :czech_republic:, :denmark:, :estonia:, :faroe_islands:, :finland:, :fr:, :de:, :ghana:, :gibraltar:, :greece:, :greenland:, :guernsey:, :hong_kong: (:cn:), :hungary:, :iceland:, :india:, :indonesia:, :ireland:, :isle_of_man:, :israel:, :it:, :jp:, Jersey, Korea, :latvia:, :lebanon:, :liechtenstein:, :lithuania:, :luxembourg:, :malaysia:, :malta:, :mauritius:, :mexico:, :monaco:, :montserrat:, :netherlands:, :new_zealand:, :niue:, :norway:, :pakistan:, :panama:, :poland:, :portugal:, :romania:, :ru:, :samoa:, :san_marino:, :saudi_arabia:, :seychelles:, :singapore:, St Kitts and Nevis, St Lucia, St Vincent and the Grenadines, Slovak Republic, :slovenia:, :south_africa:, :es:, :sweden:, :switzerland:, :tr:, :uruguay:.

(Thomas Purchas) #9

You should still declare your tax residency. Depending on the country you may not be reported anyway, as your bank balance will be too low, and even if you are reported, it’s only so that countries you are tax resident in can calculate your correct tax rate (which should be 0 in your case).


:jersey:, :north_korea:/:kr:, :slovakia:

We’re only missing three now.

(Allie) #11

Looks like you’re missing the most intrusive of all, the US.

(Alan cuthbertson) #12

You say there is a minimum limit for reporting what is it

(Kolok) #13

Don’t you provide everyones info to HMRC and then country X comes to HMRC and asks can we have person a b c info?

Sounds like a backwards system if HMRC rely on people being honest and only forward info if people ‘own up’

(Thomas Purchas) #14

Ahhh yes. There’s FATCA for the US, and CRS for all the other countries. I only listed the CRS countries, I’ll update the post.

(Thomas Purchas) #15

No, we only provide info on people who have told us they are tax resident in one of the countries above. HMRC then forward this data onto the appropriate countries at the beginning of the next tax year, and receive data from those countries about UK tax resident people at the same time.

Almost all tax reporting relies on people being honest with agencies like HMRC and reporting their income properly (in the UK this normally done vie PAYE or self assessments). The incentive for honestly is the avoidance of very large fines if you’re caught miss-reporting your finances. If HMRC suspects foul play, they may decide to investigate you, at which point you will be forced to repay missing taxes plus fines etc.

(Kolok) #16

Oh, of course HMRC need info to go request data for themselves from other countries, I forgot about that.

I’ve got a very complicated citizenship situation with one of those countries and different agencies in that country seem to have different info about me , but luckily I haven’t had tax problems with either, but could be because I’m low income and I wonder what would happen if I earnt more.

(Thomas Purchas) #17

I’ve just double checked this, I haven’t got that quite right. Under FATCA the minimum in 50k USD. For CRS which is every other country there is no minimum.

(Allie) #18

Wait? Are you saying my accounts don’t actually get reported as they’re under $50k? If this is the case why are some banks so paranoid they ban US citizens.

P.S. @thomas - one more question - where do I find my Investec account details for filing FBAR?

(Thomas Purchas) #19

Under FATCA (Annex I) accounts under $50k in value are not considered reportable. This doesn’t mean that banks don’t report them anyway.

I have no idea. I’ll ask around and get back to you with an answer.

(Alana Davison) #20

I have no idea what this means. I am from Australia and have dual citizenship with the UK. I am working here and paying tax here. Do I need to declare something? If so how?