15th January 2010
HM Revenue & Customs have announced that they intend to target medical practitioners in a new initiative which they have introduced this week. This is referred to as "The Tax Health Plan" and under this plan HMRC are seeking voluntary disclosure by medical practitioners of any understated income in the 20 years leading up to 5 April 2008.
This is a wide ranging exercise with huge scope. There are tight deadlines. Medical professionals need to register their intention to make a voluntary disclosure by 31 March 2010 and need to have made that disclosure as well as paying the related tax, interest and penalties by 30 June 2010. If HMRC receive a full and accurate disclosure of any relevant income, along with the related payment by 30 June, then those who qualify can expect a reduced penalty of 10%. The benefits of the Tax Health Plan are perceived to be the possibility of avoiding the potential penalty of up to 100% of the tax due and also avoiding an Inland Revenue investigation which could result in a criminal prosecution.
This is a very serious initiative on the part of HM Revenue & Customs targeted at health professionals. Communication with HMRC needs to be in a prescribed format.
We are encouraging anyone who has any concerns about this to contact us as soon as possible to talk though how they think they may be affected.
For more information contact Whittingham Riddell's Specialist Healthcare Team on 01743 273273.
