Back to all Blog posts
Health warning – HMRC target medical professionals and dentists!
Posted by Andy Richens on 1/20/2010
If your consultant or GP has been looking slightly off-colour, it may be because they have heard that HMRC have contacted private health insurers and hospitals to obtain details of fees and commissions payable.
Following the recent successful offshore disclosure opportunity, which resulted in 10,000 taxpayers notifying their intention to disclose undeclared income, HM Revenue & Customs (HMRC) has introduced a Tax Health Plan (THP).
The THP is aimed at all medical professionals registered with the GMC, giving them an opportunity to make a full disclosure of undeclared liabilities. In return, the maximum penalty charged will be 10% of the tax due. One week after the official launch and following a question and answer forum on its website, HMRC extended the scheme to include dentists, stating this was always their intention.
Those who choose not to disclose, but whose returns are taken up for enquiry following the information gathering exercise by HMRC, could expect a penalty of between 30% and 100%. HMRC’s Director of Risk and Intelligence suggested that those medical professionals affected should ‘contact us before we contact you’.
The time limits to enter the THP are crucial. The medical professional must notify HMRC of their intention to make the disclosure by 31 March 2010. This can be done online or over the telephone, all that is required at this stage is the GMC Registration and National Insurance number.
The disclosure itself and payment of the tax, interest and penalty must be made by 30 June 2010.
This is the fourth such initiative offered by HMRC, following two offshore disclosure programmes and a Liechtenstein Disclosure Facility. This could also be the time for those taxpayers not falling within these plans, but with something to declare, to come forward and ask for similar treatment.
Bishop Fleming have considerable experience under the earlier disclosure schemes, and can be contacted if you are affected by the above.
All information correct at time of posting.