HMRC Investigations

Tax Health Plan

Tax Health Plan (THP) for Medical Professionals – Tax disclosure opportunity

HM Revenue & Customs (HMRC) have indicated that information they have obtained from various institutions that make payments to medical professionals has shown that some individuals are failing to declare all of their income. Based on this information they have announced an opportunity for medical professionals with undisclosed tax liabilities to come forward before 31 March and settle their affairs at a reduced penalty rate.

To take immediate action email Loucas Tax Health Plan specialist stuart@loucas.org.uk or call 01622 758257.

Tax Health Plan Benefits

For a limited period, if you are within the scope of the Tax Health Plan (THP), you can benefit from the favourable terms offered.

• A fixed penalty of 10% of the taxes you have underpaid.
  
• No penalty where the total of unpaid taxes is less than £1,000.

Anyone who failures to take advantage of the disclosure facility and is later found to have under declared profits could find themselves facing:

• penalties of up to 100% of the tax due
• criminal investigation (in exceptional circumstances)

If you are a doctor, surgeon, dentist, hospital consultants or other medical professional and manage your own tax returns it is advisable to seek professional guidance at this time. HMRC will not offer these preferential terms to medical professionals again.

Loucas have appointed Stuart Shaw CTA as their specialist Tax Health Plan (THP) consultant. He is fully versed in the requirements of this tax disclosure for medical professionals and is on hand to guide you through it. You only have until 31 March 2010 to register for the Tax Health Plan.

For more information email stuart@loucas.org.uk or call today 01622 758257.

All calls will be dealt with in the strictest of confidence

Further Tax Health Plan (THP) information

• What is the Tax Health Plan – explanation from Loucas
• HMRC Frequently Asked Questions download (.pdf)

What is the Tax Health Plan?

THP is open to medical professionals such as doctors, surgeons, dentists and hospital consultants, with unpaid taxes and duties. HMRC have used their legal powers to obtain information from various sources, including NHS trusts, private hospitals and medical insurers, and now know that these institutions have made payments to some individual medical professionals that are failing to declare all of their income.

There is nothing wrong with receiving payment for services from these sources as long as you pay any taxes due. If you have done this you have nothing to disclose to HMRC and do not need to use the Tax Health Plan facility.

Many medical professionals will have paid the right amount of tax but some will not. If there is any chance you have unpaid tax liabilities then you should contact our Tax Health Plan Tax Advisor Stuart Shaw via email stuart@loucas.org.uk or call 01622 758257.

HMRC want those with unpaid taxes and duties to pay what they owe. The THP is an opportunity for those with undisclosed income to come forward and settle their affairs with HMRC at a reduced penalty rate, bringing their tax affairs up to date.

For a limited period, if you are within the scope of THP, you can benefit from the favourable terms offered. You must make a full disclosure of all undeclared liabilities, not just those connected with any undisclosed income. If you do this you will have the following certainty of treatment.

1. A fixed penalty of 10% of the taxes/duties you have underpaid.
2. No penalty where the total of unpaid taxes or duties is less than £1,000.

If your unpaid tax is linked to an offshore account or asset you should have made a disclosure under the Offshore Disclosure Facility in 2007, or the New Disclosure Opportunity in 2009/10. This means the favourable penalty offered under the THP is not open to you. However you are encouraged to disclosure any unpaid taxes and duties and Loucas Personal Tax Specialists can help you with this

Using Loucas to manage your Tax Health Plan (THP) tax disclosure

Stage 1 – notify HMRC of your intention

Working with you, Loucas will notify HMRC by 31 March 2010 of your intention to make a disclosure. This will enable you to benefit from the terms of THP. If you do not notify HMRC by that date THP terms will not be available to you but you should still make a disclosure. Coming forward voluntarily will help to reduce any penalty you are charged and Loucas experienced Tax Advisors will be able to help you manage this process.

Stage 2 – disclosure and payment of Tax Liabilities

Our specialist Tax Health Plan tax advisor Stuart Shaw will calculate your outstanding tax liabilities and manage your disclosure on your behalf. Full payment to HMRC is required by 30 June 2010.

Getting Your Disclosure Accepted

Loucas understand that HMRC will accept the vast majority of disclosures, as long as they comply with the conditions set down. Working with Loucas will ensure that your Tax Health Plan disclosure has the best chance of being accepted and that you avoid any errors that could lead to it not being accepted and subsequent penalties.

Disclosures Outside of the Tax Health Plan

You can still make a disclosure and put your tax affairs in order even if you have not earned undeclared income as a medical professional. The disclosure will not be part of THP and therefore the fixed penalty under THP will not be available, but anyone who makes a full and voluntary disclosure of all unpaid liabilities in these circumstances can expect a lower penalty than HMRC would otherwise seek if they raised an enquiry or compliance check without the disclosure. Loucas' tax team can help guide you through this process. See details of our full Accountancy services.

If you have undeclared liabilities and you choose not to declare

After 31 March 2010, when the notification period ends HMRC will review the affairs of customers whose payment details they hold and who have not notified HMRC that they intend to make a disclosure. They will identify those who they believe should have come forward by:

• comparing the information already in our possession with customers' UK tax histories
• continuing to use powers to obtain detailed information about other payments made

Where there is a mismatch, HMRC may contact you and undertake compliance checks or enquiries to resolve matters. Where additional taxes are due HMRC will seek higher penalties than the 10% available under THP. These penalties could be up to 100% of the unpaid liabilities and are unlikely to be less than 30%.

Loucas have helped many taxpayers comply with previous disclosure facilities and if you would like to talk to us regarding the Tax Health Plan (THP) please contact Stuart Shaw on 01622 758257 or via email stuart@loucas.org.uk.

All calls will be treated in the strictest of confidence.