HMRC issued a press release today launching a wholly new concept in UK tax compliance – an incentivised disclosure initiative aimed at a particular sector: in this case members of the medical and dentist professions.
The taxman said: “Medical professionals are being encouraged under a new Tax Health Plan to tell HM Revenue & Customs (HMRC) if they have understated income. Those who contact HMRC by 31 March 2010 to make a voluntary disclosure will be able to put their tax affairs in order simply and on the best available terms. After that date, using information it holds about how much is paid to them, HMRC will carry out targeted investigations aimed at medical professionals who have not come forward. Substantial penalties of up to 100% of the tax due or even criminal prosecution could follow for those who have undeclared tax liabilities.”
The Health Plan (THP) is the first initiative in a new HMRC tax amnesty campaign focused on professionals. They aim to make it easier for taxpayers to put their tax affairs right.
HMRC’s Director of Risk and Intelligence said: “Our aim is to make it as easy as possible for people to come forward, make a full disclosure and benefit from the certainty of a reduced 10% penalty that HMRC is making available to those who qualify for this opportunity. The message is clear: contact us before we contact you.”
The Health Plan will operate in two stages. From 11th January to 31st March 2010, medical professionals can register their intention to make a voluntary disclosure with HMRC. By 30th June, those who have registered must have made their disclosure as well as arrangements to pay all tax interest and penalties due.
The various tax amnesty processes are straightforward in simple cases. But there are many pitfalls for the unwary or those with more complex tax affairs. Badly managed Disclosures can have the reverse effect; leading to higher penalties; a Civil Investigation of Fraud enquiry; or even 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 disclosures to the taxman and tax enquiries. In fact it’s all we do – because we are deep specialists.
For a free, private, no obligation consultation, don’t delay, call Paul Lynam today: on 0845 643 9997