Tax Health Plan
HM Revenue & Customs (HMRC) has introduced its inappropriately named “Tax Health Plan” which is an opportunity for medical professionals such as doctors, medical specialists, surgeons and consultants (regulated by the GMC) and dentists, to disclose previously undeclared income and related tax liabilities under a voluntary arrangement to come forward and settle their affairs.
Incentives are on offer in the form of a low fixed penalty of just 10%, as opposed to a possible maximum of up to 100% of the tax due where HMRC make the discovery and pursue those with undeclared liabilities who decide not to make a disclosure at this time. In exceptional cases, criminal investigation may be considered.
HMRC is obtaining information from various sources including NHS Trusts, private hospitals and medical insurers. An intention to disclose needs to be made by 31 March 2010 and disclosure with payment must be completed by 30 June 2010.
Those who think they might have unpaid liabilities ought to seriously consider having such matters dealt with by specialists. Tax in general can be extremely complex and there are many pitfalls for the unwary. These cases require expert handling in the brief window of opportunity. We suggest you contact a specialist as soon as possible if you wish to take advantage of the amnesty.
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Thanks for this Mark.
Personally, I am very interested to see how the tax health develops.
There have been several recent Revenue compliance drives along these lines – in particular with regard to offshore bank accounts. Those previous campaigns have not been greatly successful, but I expect that this one will produce a better result. It is hugely easier for HMRC to get their hands on info from a PCT about the doctors within their trust, for example, than to get a Swiss bank with a UK branch to hand over info about their account holders. Also, doctors may feel extra pressure, as a result of their community standing, to avoid adverse publicity. As you say, having the additional benefit of a reduced penalty won’t hurt.
I wonder if this is a sign of things to come. Should we be looking forward to the Disclosure Opportunities for Accountants and Lawyers….I think this comment should be removed
In answer to my question above – yes we should. Lawyers and Accountants are indeed next on the list for HMRC’s “Professionals Campaign”.I think this comment should be removed