Taxman launches tax plan for medics

The taxman has launched a new tax plan for the medical profession, aimed at further tackling tax non-compliance in the wake of the relatively small number of people who came forward under the New Disclosure Opportunity. As part of the Tax Health Plan, HM Revenue & Customs is using new information powers to obtain data from third parties about individuals' tax affairs. It has already obtained information from UK banks, and is now approaching NHS Trusts, private hospitals and private medical insurers to gain information on medical professionals. According to law firm McGrigors, HMRC is concerned that 'some medical professionals may be understating the amount of earnings upon which UK tax and duties is due.' This is likely to include professionals who have not declared some or all of their earnings from private consultancy work. Chairman of the Chartered Institute of Taxation's Management of Taxes Committee Gary Ashford said: 'HMRC have effectively structured their compliance risk and information gathering function into a national unit and we are now starting to see the results of their work. 'The THP shows the way ahead for HMRC. We have just seen the NDO end with 10,000 disclosures to HMRC. Now it is the turn of health professionals; clearly other sectors may follow.' Under the terms of the THP, taxpayers will be required to pay the tax due on income and gains on their unpaid tax liabilities as well as interest and, in most cases, a fixed 10% penalty. 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.' The notification period will run from 11 January 2010 to 31 March 2010.
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