Doctors and dentists are being targeted by HM Revenue & Customs (HMRC) under a new initiative designed to tackle perceived tax avoidance in the medical profession.
HMRC have declared an amnesty to encourage medical professionals with undeclared income to make a full disclosure of that income and bring their tax affairs up to date. Those who take advantage of this opportunity will avoid investigation into their tax affairs and benefit from a reduced penalty of 10% of the tax due on any undeclared income. Failure to take advantage of the amnesty could result in a tax investigation, and if the taxpayer is found to have undeclared income they could face financial penalties of up to 100% of their outstanding tax liability. HMRC have confirmed they will gather information on taxpayers from various sources including NHS trusts, private hospitals and medical insurers.
Medical professionals should review their tax affairs and, if they have any undeclared income, notify HMRC of their intention to make a voluntary disclosure by 31 March 2010.