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November 2011

Healthcare professionals come under further scrutiny

Earlier this week we reported how HM Revenue and Customs (HMRC) were targeting private tutors and coaches, these individuals becoming the next focus in a string of initiatives to recover unpaid taxes, from one industry sector at a time. This comes as the healthcare professionals who did not respond to the Tax Health Plan are put under further scrutiny by HMRC.

The Chartered Institute Of Taxation have noted that HMRC have issued a final warning to 2500 healthcare professionals who the taxman believes to be behind with their tax affairs. They have a period of 21 days to come forward otherwise HMRC will make a determination or refer them to their specialist investigation teams.

Gary Ashford a representative of CIOT on HMRC’s Compliance Reform forum, commented:

“HMRC made clear at the launch of the Tax Health Plan in January 2010 that they would be adopting a carrot and stick approach. They have offered the carrot of a relatively low penalty rate for doctors to get their affairs in order and 1500 health professionals took it up, bringing in £10 million for the Exchequer. Now they are wielding the stick at those who have not come forward.

People should not underestimate the amount of data that HMRC is holding. They have been talking to medical insurance companies, pharmaceutical companies and locum agencies. What we are now seeing is HMRC starting to use that information, to identify who has not notified HMRC of all their tax liabilities.

The plumbers ‘Tax Safe Plan’ has seen nine arrests since the disclosure opportunity ended in August. Doctors should be clear that not coming forward is a prescription for a very tough penalty, potentially even prosecution.

HMRC have told members of their Compliance Reform Forum that the next two campaigns they will launch will be targeting e-marketplaces and electricians.”

If you are unsure about your current tax situation and think you may be underpaying tax, please contact us today on 02476 518 555 or email [email protected]