HMRC today launched a new ‘tax amnesty’ aimed at medical professionals to disclose unpaid tax liabilities.
According to the Revenue, they are concerned that:-
“…some medical professionals may be understating the amount of earnings upon which UK tax and duties is due.”
It is believed that this amnesty is aimed at any medical professional who is a member of the General Medical Council (GMC).
We understand that HMRC have already held discussions with the GMC and other professional bodies to warn them of the impending tax amnesty.
Under the terms of the new amnesty, officially named the ‘Tax Health’ plan, taxpayers will be required to pay any tax due on income and gains on their unpaid tax liabilities in addition to interest and a reduced fixed penalty of 10%.
In normal circumstances, HMRC can demand a maximum penalty of 100% of the tax due.
The notification period for the tax amnesty will run from 11th January 2010 to 31st March 2010, during which time medical professionals can register their intention to disclose.
By 30th June 2010, anyone who has registered under the amnesty must have submitted their disclosures and paid any outstanding tax liabilities along with the interest and penalties due.
It has been widely reported that once the ‘Tax Health’ plan is complete, further amnesties will be announced in relation to other professions such as bankers, lawyers and accountants.
HMRC have made it clear that the ‘Tax Health’ plan will not be a ‘backdoor for those who chose not to use the NDO.’
Any taxpayer who registers under the medical amnesty who could have declared their income under the New Disclosure Opportunity (NDO) will be subject to substantially higher penalties than the discounted 10% penalty on offer.
KinsellaTax advises that anyone who thinks they should submitted any previously undeclared income should contact a professional for advice.