News
Another disclosure opportunity!
Posted on: 11 January 2010
Just a week after the passing of the deadline to take part in the New Disclosure Opportunity (NDO), HMRC has announced a different type of disclosure facility, this time aimed at a particular sector - medical professionals. The facility is known as the Tax Health Plan (THP), and is open to individuals, companies and trusts with undeclared income tax, corporation tax, PAYE, national insurance, capital gains tax, inheritance tax or VAT liabilities.
HMRC has been collecting information on payments made to hospital consultants, doctors, dentists and other medical professionals from various sources, including NHS trusts, private hospitals and medical insurers. This follows a concerted campaign by HMRC for such bodies to report details of all fees, commissions and other payments.
HMRC’s first ‘amnesty’ - the Offshore Disclosure Facility (ODF) - proved to be an efficient means of collecting unpaid tax liabilities, so HMRC has decided to offer medical professionals a similar opportunity to come forward and declare untaxed amounts before it proceeds to carry out investigations using the information it is gathering. We understand that the areas that may involve unpaid taxes include commissions, expenses, the use of locums, staff accommodation and the status of workers.
The deadline for notifying HMRC of an intention to participate in the THP is 31 March 2010, and a full disclosure, together with payment of the outstanding tax, interest and a penalty, must be made by 30 June 2010. In common with other recent disclosure opportunities, the penalty will be limited to 10 per cent of the tax liability, except where an offshore account is involved and no disclosure was made under the ODF or NDO. No penalty will be charged where the tax liability is less than £1,000.
HMRC has published the following detailed information:
Workers in other sectors with undeclared tax liabilities may now be tempted to wait and see whether HMRC will offer other sector-specific disclosure opportunities, but we would always encourage anyone to consider an early voluntary disclosure, as it may be possible to agree settlement terms that are as good as, or better than, those offered under the formal disclosure facilities.
Please contact Stephen Besford to discuss or request assistance with the THP or any other voluntary disclosure of tax liabilities.
