HMRC gives medical professionals chance to own up to undeclared income
HMRC has announced a new facility called the Tax Health Plan (THP) that will provide medical professionals with a limited opportunity to disclose all previously undeclared income in return for a reduced penalty.
HMRC has run similar schemes over the last couple of years, such as the disclosure of offshore bank accounts at the end of 2009, but this is the first time HMRC has used its new powers to target a specific industry sector.
HMRC has obtained information from a variety of sources including NHS trusts, private hospitals and medical insurers and it will now match this information against the returns of income made by medical professionals.
However, HMRC are giving medical professionals an opportunity to make a full disclosure and settle any outstanding liabilities in return for a reduced penalty.
Who does it affect?
Anyone registered with the GMC and that has a GMC registration number is affected. It is as yet unclear if this will affect other medical professional bodies and you should seek advice if your employer or client is a member of another professional body.
What to do
To take advantage of this opportunity, medical professionals with undeclared income should:
- Notify HMRC by 31 March 2010 M
- Make a disclosure by 30 June 2010
- Pay the tax, interest and 10% penalty (penalty only applicable if liability is over £1000)
The Disclosure
HMRC has set out the process for notification and disclosure. However, the calculation of the amount due is more complex. Each disclosure must include detailed calculations of the unpaid tax liability, interest and penalty due, along with a declaration that the disclosure is correct and an offer to pay.
The disclosure should cover the last 20 years.