Staffordshire accountancy firm DJH Accountants Ltd is urging
doctors and dentists across the region to consult with their
accountants to ensure that all relevant income from previous tax
years has been accounted for or they could face investigation,
financial penalties and even criminal prosecution by HM Revenue and
Customs (HMRC) following the launch of a new tax amnesty called the
Tax Health Plan aimed at health professionals.
Coming hot on the heels of HMRC's efforts to uncover taxable
income that had been hidden by UK taxpayers in offshore bank
accounts, the Tax Health Plan was launched by HMRC earlier in the
month and is designed to encourage medical professionals to tell
them if they have understated their income or have secret
savings.
Those doctors, consultants, and dentists who contact HMRC by
31st March 2010 to make a voluntary disclosure regarding any
understated revenues or past tax irregularities will be able to put
their tax affairs in order as they then have until the 30th June to
make their disclosure and arrange payment of any penalties due. A
fixed rate penalty of 10% is likely to apply. Understated income
could include payments for private work or cash payments for
medical reports.
After this date, HMRC, using information it holds will carry out
targeted investigations aimed at those who have not come forward.
Those found not to have declared in the amnesty could face
substantial penalties or even criminal prosecution.
In its most recent offshore disclosure campaign HMRC uncovered
10,000 people who said they wanted to pay tax on income hidden
abroad and the hope by HMRC is that the Tax Health Plan will have
the same effect.
Chris Beardmore Director of DJH Accountants Ltd comments: "Tax
is set to stay in the headlines this year, with this new scheme and
HMRC indicating that this is the first in a series of investigation
amnesty initiatives aimed at professionals.
The HMRC now has the technology to cross-check returns from
different companies, banks and the NHS, making it easier to spot
cases of evasion.
Anyone who does not come forward, but who is subsequently
investigated and found to have been avoiding tax, may be fined up
to 100% of their unpaid tax, with a minimum penalty of at least
30%.
In the next week or so, many UK taxpayers will be racing to file
their self-assessment returns, and pay the tax due, by the due date
of 31 January so I urge those professionals to ensure they gain
advice before falling foul of these new rules. Furthermore, with
many doctors and dentists coming under the new 50 per cent tax rate
for high earners being introduced in April, as well as the strong
possibility of further tax increases after the general election,
between now and April, there is a window of opportunity to get a
step ahead, so professionals can anticipate and, with the right
planning, even mitigate future tax rises."