Essential 11: guide to the Tax Health Plan (THP)

March 10th, 2010

The Tax Health Plan (THP) is a Tax Amnesty for the medical profession only.  What are the key points?

1. HMRC’s campaign is underpinned by information obtained from NHS Trusts, private hospitals, medical insurers etc;
2. Medics must notify their “Intention to make a Disclosure” to the tax authorities by 31st March 2010;
3. A full disclosure must be made to HMRC in writing by 30th June 2010;
4. Any additional tax, interest and penalties must be paid by 30th June 2010;
5. Disclosures will normally carry a (low) fixed 10% penalty (but there are no penalties where innocent errors have been made);
6. The disclosure may have to cover up to a maximum of 20 years;
7. Medical professionals will be unable to use any future disclosure facilities which may be offered by HMRC, but could use the current Liechtenstein Disclosure Facility. Importantly, the LDF is not limited to people with existing financial connections to Liechtenstein;
8. After 31st March 2010 HMRC will begin using the information it has obtained to commence investigations;
9. All disclosures under the THP will be treated in confidence; the GMC/GDC will not be notified by HMRC;
10. The taxman will review disclosures after 30th June 2010 for accuracy and completeness. If the disclosure is accepted, HMRC will write to confirm this;
11. Medical professionals subsequently found to have undisclosed tax liabilities and who chose not to make a disclosure via the THP can expect penalties of up to 200% and run the risk of criminal prosecution.

How can a Tax Enquiry Specialist help me?

The various tax amnesty processes are straightforward in simple cases.  But there are many hazards for the unwary or those with more complex tax affairs.  Badly handled Disclosures can have a negative effect; leading to higher penalties; a Civil Investigation of Fraud enquiry; or in extreme cases, prosecution.

Your usual accountant may be able to help.  But sometimes a specialist consultant is required, rather than a general practitioner.  Lynam Tax Enquiry Experts have vast experience of handling tax enquiries and disclosures to the taxman.  In fact it’s all we do – because we are deep specialists.

For a free, no obligation, private consultation, don’t delay, call Paul Lynam today: on 0845 643 9997