Her Majesty’s Revenue and Customs has announced it will be offering favourable terms to medical professionals to disclose understated income and pay any tax due.
HMRC’s Tax Health Plan (THP) offers a reduced fixed penalty of 10% for full and accurate disclosures where the intention to make a disclosure is notified to HMRC by 31 March 2010 – subject to certain other conditions.
Following that date, HMRC will carry out targeted investigations and for those with undeclared tax liabilities, substantial penalties of up to 100% of the tax due or even criminal prosecution could follow.
We expect that HMRC are looking for income such as undeclared commission, fees from medical insurers and ‘ash cash’ payments. We understand HMRC has already issued formal notices to BUPA, Sun Life and other institutions to obtain details of commissions and has identified upwards of 800 potential enquiry cases.
The deadline for notifying HMRC of an intention to make a disclosure is 31 March 2010 so if this could apply to you or you would like to discuss this further, please contact a member of the Tax Team at your local Champion office.
Blackpool (01253) 621512
Chester (01244) 404420
Manchester (0161) 7032500
Preston (01772) 735000
Southport (01704) 535687
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