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First the carrot, and now the stick
Posted by Tim Godfrey on 1/18/2012
The carrot
HMRC raised over £10 million from more than 1,500 disclosures made under the Tax Health Plan, but HMRC are looking to raise yet more from the plan.
The plan, which ran until 30 June 2010, gave medical professionals the chance to come forward voluntarily and get their tax affairs up to date – the attraction of disclosure was a fixed penalty of 10% of the underpaid tax.
The stick
HMRC are now in the process of targeting a further 2,500 doctors and dentists that they believe should have used the Tax Health Plan, but chose not to do so – those individuals are being sent letters telling them to rectify their tax affairs within 21 days. If this is not done, then HMRC will either make a determination of the estimated tax liability, resulting in significant additional charges, or refer the case to their Criminal Investigations department.
HMRC have been talking to a number of parties, including pharmaceutical companies and locum agencies, and they now hold a considerable amount of data with which to identify individuals who have not notified them of all their tax liabilities. It may not be too late for voluntary disclosure, and penalties are generally less severe for people who come forward. If you are aware of any clients of yours who are in this position, then it is best to contact HMRC immediately.
www.hmrc.gov.uk/tax-health-plan
All information correct at time of posting.