Taxman’s health plan may be bitter pill – Baker Tilly (From Watford Observer)

Taxman’s health plan may be bitter pill – Baker Tilly

9:40am Friday 29th January 2010 in

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Doctors and dentists in the region are under the taxman's spotlight following news that HM Revenue & Customs (HMRC) has set out a tax amnesty aimed solely at medical professionals.

Appropriately titled the “Tax Health Plan” (THP), it encourages medics 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 March 31 with all forms completed and duties paid by June 30.

David Barton, tax partner at the Watford office of Baker Tilly, said: “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 and 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 ten per cent.

Some medical professionals may be concerned that the General Medical Council (GMC) may get to hear of any tax irregularities now volunteered.

Barton 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.”