Architects, accountants and lawyers are set to be the next group of professionals to have their earnings and tax affairs scrutinised over the coming months over fears of undisclosed income.
Self-employed professionals, such as barristers, are seen by HMRC to be easy-pickings as the vast majority of their income is not taxed at source. Some tax experts believe that the ‘missing’ tax could total millions in some cases.
Targeting a specific group of professionals follows the ‘Tax Health Plan’ amnesty which was offered to doctors and dentists earlier this year as part of HMRC’s drive to collect extra revenue.
HMRC described the amnesty as ‘very productive’ despite the fact they extended the amnesty period due to their disappointment in the low uptake of the deal.
Having said that it has been reported that the Tax Health Plan resulted in 1,500 disclosures yielding an additional £9 million in tax with one case alone bringing in £1.2 million.
The proposed amnesty for professionals such as accountants and lawyers could prove successful and help to reduce the deficit in Treasury coffers.
An HMRC official said:-
“This is a good model that we’re looking at taking forward. Amnesties cost us next to nothing”
Targeting specific groups of professionals could bring in considerable amounts of tax for HMRC from “professionals who should know better”.
We already know that HMRC are setting up a dedicated team of investigators aimed at catching individuals who are hiding money offshore so on the surface it looks as though HMRC are really trying to make a difference.
Whether any of this proves fruitful remains to be seen.
However, the risk of HMRC opening up an investigation into anyone’s tax affairs is too great and anyone who suspects or knows they have not paid the correct amount of tax should approach HMRC before they find you.
A voluntary disclosure is an easy process and much less stressful than a full-blown tax investigation.
KinsellaTax can handle this completely for you and most importantly, our policy is to not let our clients have a meeting with HMRC. We will do that for you.
If you are worried about undeclared income or whether you have paid the right amount of tax contact one of our tax experts today on 0800 471 4546.
We are here to take the stress away.