HMRC, reportedly disappointed in the uptake of the medical tax amnesty, have given doctors and dentists until 1st September 2010 to make a voluntary disclosure and benefit from a reduced tax penalty.
However, HMRC revealed that only approximately 1,500 medical professionals made voluntary disclosures; a tiny proportion of the 28,500 health professionals that the taxman believe need to declare income.
The disclosures to date have harvested roughly £9 million with the biggest case alone raking in £1.2 million.
Although health professionals now have a few more weeks in order to voluntarily disclose income, they will no longer be able to benefit from the 10% fixed penalty from the original plan.
However, doctors and dentists who come forward before the 1st September deadline will be awarded a penalty significantly less than the maximum 100% tax penalty that can be awarded.
Anyone who doesn’t declare undisclosed income will be subject to a thorough investigation by HMRC and a possible criminal prosecution.
A source from HMRC has declared that investigations carried out will be looking at prosecution from the outset – particularly where hidden payments are involved.
The poor uptake of the Tax Health Plan suggests that either medical professionals have not taken the taxman’s warning seriously or that HMRC have failed to get their message across clearly enough.
Either away, it was a disappointing result for HMRC but, in some ways, a good result for health professionals as they know have another window of opportunity in which to declare additional income.
If you need to speak to a tax adviser about making a voluntary disclosure to HMRC then contact us quickly whilst you still have the chance.
Call us anytime on 0800 471 4546.
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