HM Revenue & Customs (HMRC) has announced its Tax Health Plan (THP) to persuade medical professionals to disclose previously unreported tax liabilities. Penalties will be limited to 10% of the tax due in respect of disclosures made under the scheme.
When the THP was launched on 11 January 2010 only medical professionals regulated by the GMC were eligible to use the scheme. However, following representations by interested parties HMRC announced on 18 January that it has extended the THP to dentists.
The key points of the THP are:
You must notify HMRC of your intention to make a disclosure by 31 March 2010.
You must:
- make a full disclosure of all undeclared liabilities for the last 20 years
- disclose and make full payment of all outstanding taxes and duties, interest and penalties by 30 June 2010
The penalty you should include in your disclosure is fixed at 10 per cent of the taxes/duties you have underpaid unless:
- the total amount of unpaid liability being disclosed is less than £1,000 in which case you need not pay a penalty
You can make a personal disclosure or disclose on behalf of another taxpayer, for example a company, trust or deceased person.
HMRC has acquired information from various sources, including NHS trusts, private hospitals and medical insurers, to obtain details of income paid without the deduction of tax to medical practitioners.
HMRC has stated that it will pursue those with undeclared tax liabilities who decide not to make a disclosure. In these cases the penalties could be up to 100 per cent of the tax due and in exceptional circumstances criminal investigation may be considered.
Further information can be found at: www.hmrc.gov.uk/tax-health-plan
How we can help
Our tax team can support and assist you in all dealings with HMRC, particularly where additional taxation liabilities might be due.
We have vast experience in assisting clients with making disclosures to HMRC as well as being experts in acting for medical professionals.
Without the support of an experienced tax adviser, tax investigations can be time consuming, complicated and worrying. If you appoint us to act for you we will meet you to discuss the process, deal with HMRC on your behalf and ensure that that you pay the correct amount of tax due.
Please contact Phil Blackburn for an initial chat on philipblackburn@lubbockfine.co.uk or 020 7490 7766.
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