Taxman's health plan may be a bitter pill to swallow

HM Revenue & Customs (HMRC) has today set out a tax amnesty aimed solely at medical professionals.

Appropriately titled the “Tax Health Plan” (THP), this encourages medical professionals who might have under-declared their taxes to come forward and put things straight with HMRC in a relatively painless fashion.  Notification of any intent to disclose is required by 31 March 2010 with all forms completed and duties paid by 30 June 2010.

According to Mike Down, Tax Risk and Investigation Management Partner at leading accountants Baker Tilly: “HMRC has always checked-up closely on the tax returns of doctors and dentists. However it now seems that they have accumulated information from NHS Trusts, private hospitals and medical insurers.  The THP operation suggests that a large amount of tax is going astray”.

Inspectors will not forgo any tax arrears. However, in line with the latest offshore tax amnesties, the THP will provide a streamlined process for making a disclosure and a fixed penalty of just 10%.

Some medical professionals may be concerned that the General Medical Council (GMC) may get to hear of any tax irregularities now volunteered. Down added: “HMRC will not divulge the names of medical professionals disclosing under the THP. However, in the event of HMRC subsequently catching up with a doctor who had failed to volunteer tax arrears under the THP, the forthcoming legislation aimed at “naming and shaming” tax evaders may result in others as well as the GMC finding out.”