With increasing scrutiny on global wealth and the rising risk of tax investigations, high-net-worth individuals (HNWIs) are turning to tax compliance apps to help manage their obligations. While technology can offer valuable support, it’s essential to choose solutions that align with individual needs and work alongside expert tax advice to ensure full compliance.
Technology works best when it serves your goals rather than makes you work more. Automation, customisation and security are essential for good compliance apps — whether you need help with day counting or digital storage. For globally mobile individuals considering a move or managing tax obligations across jurisdictions, technology may assist in streamlining these complex compliance efforts.
Tax compliance apps come in many flavours, and many local tax authorities offer their own apps for filing taxes. Below are three apps that offer tax compliance functionality at different levels. These apps could help if you live a globally mobile lifestyle or are considering a move to another country.
Please note that these mentions are not endorsements, and their suitability should always be evaluated by a tax or financial advisor.
Tax planning can play a significant role in deciding where you want to live. However, countries often require people to meet certain day-counting thresholds to determine tax residency. Daysium can help HNWIs in two ways:
Daysium automates the process of day counting, tailoring the day counting limits based on your specific circumstances and tax jurisdictions that matter to you. You can focus on travelling for business or pleasure, knowing you are meeting compliance requirements.
Tax compliance apps can also help you manage your documents. As more financial records become digitalised, having a secure digital data room to store all the data can help you stay compliant.
Nextcloud is an open-source document management platform that some organisations use for secure data storage and collaboration. It offers various customisation options and compliance features, which may be beneficial for individuals handling complex financial data.
Other cloud-based alternatives, such as Dropbox or Google Drive, provide more straightforward solutions for document storage. However, security and data privacy should be a priority when dealing with financial records. The suitability of any storage system depends on individual needs and should be assessed accordingly.
Wealth and investment management apps can provide financial oversight and some offer tax-related reporting features. Wealthfront, for example, includes tax reports for investments and an option to automate the sale of shares for potential Capital Gains Tax (CGT) optimisation. However, Wealthfront is currently only available to US users.
For residents outside the US, alternative platforms may be available, though the level of tax-reporting functionality varies. As always, financial and tax advisors can provide tailored guidance to ensure compliance and strategic tax planning.
When searching for an app, it’s always a good idea to pay attention to its core features. This is especially important when you want the app to help you protect your wealth and make moving easier.
Life can be busy, and if you’re planning a major life change, such as moving to another country, it can be hectic. The solutions you add to your life should work for you and not require spending more time managing things. The good news is that technology can automate many mundane tasks.
So when browsing for apps and tools, it’s always worth pausing to analyse how much more work the app forces you to do?
Take Daysium’s day counting tool, for example. The app will automatically log your travel entries based on location data. Your day counts in any jurisdiction can be counted, giving you a view of how long you’ve spent in any country. If you’ve selected personalised Rule Cards, the app will show you how many days you have left before you risk tax residency.
Gone are the days when you had to pick a single system and make it work for you. The reality is that when it comes to your wealth, there is no one-size-fits-all. What works for your circumstances may not work for others.
A good companion app will work around your needs. Customisation can help ensure you’re getting the exact functionality you need. For example, many day counting apps simply keep note of your travel days. However, how authorities calculate days towards tax residency can differ.
💡 We’ve previously looked at tax residency dilemmas, such as the differences in what counts as a ‘present’ day. You can read more about it here.
Finally, you need to ensure the apps you use are secure. Your data should be protected regarding tax compliance and finances. Examine the security features and opt for apps trusted and recommended by industry experts and tax advisors.
Features like encryption and privacy controls are crucial. Apps like Wealthfront focus on adding many vital elements, like authentication tools, to guarantee your information is safe. It’s also a good idea to set up alerts for logins to ensure you can be notified if any other device logs into your account.
As you look for tax compliance apps with security, automation, and customisation in mind, remember one final piece of the puzzle: what these apps provide.
Tax authorities worldwide are increasing their scrutiny of the wealthy. In the UK, HMRC conducted over 300,000 compliance interventions in 2022/23, and with international agreements facilitating data sharing, compliance risks have never been higher.
Many tax investigations result not from wrongdoing but from gaps in record-keeping. In fact, HMRC investigations that yielded no additional tax increased by 13% to 93,000 in 2022. However, without clear documentation, individuals can face lengthy, stressful inquiries.
Proper compliance management can help avoid the stress and cost of facing a tax enquiry. The benefits of an app like Daysium include:
The famous Apple ad said, “There is an app for that“, and these days this is truer than ever. However, when it comes to an app to protect your wealth, you should consider your options carefully.
While technology can support tax compliance, selecting the right tool requires thought. Automation, customisation, and security are key factors to evaluate.
If tax residency is a concern, especially when considering relocation, a structured approach to compliance is essential. Daysium provides an intuitive way to manage day counts and supporting records, reducing the risk of compliance issues.
For individuals seeking a broader risk assessment, we offer a Tax Residency Risk Score Assessment, developed in collaboration with the UK’s Contentious Tax Group. This quick assessment provides actionable insights to help navigate tax residency complexities.
Created in partnership with industry experts, tackle the complex challenges of day counting and tax record-keeping.
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