New disclosure opportunity for medical professionals
Doctors and dentists are the latest target for H M Revenue & Customs (HMRC).
HMRC recently announced the focus of its latest tax amnesty, the Tax Health Plan (THP). This is open to all ‘Medical professionals’ but the detailed FAQs recently posted on HMRC’s website confirm it is for doctors registered with the General Medical Council. Following requests for clarification, HMRC confirmed that the THP is also open to dentists registered with the General Dental Council.
Under the new THP, medical professionals are being encouraged to tell HMRC if they have undeclared income. Those who wish to make a voluntary disclosure have until 31 March 2010 to register their intention to do so with HMRC.
Those taxpayers making a voluntary disclosure have until 30 June 2010 to make a full disclosure to HMRC and to make arrangements to pay all the tax, late payment interest and the fixed 10 per cent tax-geared penalty.
HMRC has made it clear that the focus of the THP is undeclared income. It is paying particular attention to those medical professionals who may not be disclosing private practice fees, crematorium fees, fees for medical reports etc and it has used its powers to obtain information directly from insurance companies, the NHS and other sources.
Launching HMRC’s campaign, Mike Wells HMRC’s Director of Risk and Intelligence said:
“Our aim is to make it as easy as possible for people to come forward, make a full disclosure and benefit from the certainty of a reduced 10 per cent penalty that HMRC is making available to those who qualify for this opportunity.
From April, we will be using the information at our disposal to investigate medical professionals who have not declared their full income. I therefore strongly urge any in this group who think they may have outstanding tax liabilities to get in touch with HMRC. This is the first step in enabling those with undisclosed income or gains to avoid a full tax investigation together with much higher penalties. The message is clear: contact us before we contact you.”
Clare Goodswen, Director of Tax at M+A Partners, said “HMRC has indicated that this is the first in a series of initiatives aimed at professionals. Taxpayers with undeclared income should act now to put their tax affairs in order and make a voluntary disclosure to HMRC. However in my experience most medical professionals take care to ensure that full disclosure of their tax affairs is made to HMRC and such taxpayers should be unaffected by HMRC’s latest tax amnesty.”
For more information on the Tax Health Plan, contact Clare Goodswen on 01603 227600 or email clare.goodswen@mapartners.co.uk alternatively visit www.hmrc.gov.uk/tax-health-plan/hot-topics.htm