Taxman urges medics to come clean with new amnesty

The taxman has kicked off a new amnesty targeted at the medical profession,
but has warned it will not be a back door for those who failed to take advantage
of the
New
Disclosure Oppportunity.

HM Revenue & Customs is urging those who may have undertaken activities
such as private consultancy work to volunteer information about unpaid tax
liabilities voluntarily, but this does not relate to income held in offshore
accounts.

After paying the tax due on income, gains and any related interest, most who
come forward will only face a penalty of 10%.

Medical professionals can register for the Tax Health Plan amnesty from today
(11 January) until 31 March 2010.

“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,” the taxman said.

Taxpayers must then submit their disclosure and make arrangements to pay by
30 June 2010.

The Chartered Institute of Taxation said HMRC was using its new information
powers to obtain “huge amounts of data from third parties about individuals’ tax
affairs.”

“Having used their powers to obtain information about offshore bank accounts
from UK banks, in this latest initiative they have been approaching NHS Trusts,
private hospitals and private medical insurers.”

Gary Ashford, chairman of the Chartered Institute of Taxation’s Management of
Taxes committee, said: “The THP shows the way ahead for HMRC. We have just seen
the New Disclosure Opportunity end with 10,000 disclosures to HMRC. Now it is
the turn of health professionals; clearly other sectors may follow.”

Phil Berwick, director of tax investigations at McGrigors, said: “HMRC often
targets its compliance work at specific sectors, but to do so in the form of a
tax amnesty aimed solely at the medical profession is without precedent.”

Further reading:

Deadline
for offshore amnesty extended

Taxman
confirms 10,000 offshore declarations