Letters have been issued to around 2500 dentists and doctors who HM Revenue & Customs believe are guilty of tax avoidance. The members of the medical profession have been given just 21 days to contact HMRC and get their tax affairs in order.
Following the success of the Tax Health plan in 2010, when dentists and doctors were offered reduced rate penalties charged against income which had been previously undeclared. More than 1500 medics came forward, netting £10 million. HMRC warned that they would be targeting doctors and dentists who they suspect of not declaring all income. If doctors didn’t take advantage of the partial amnesty and a fixed penalty in 2010, HMRC would be taking further action, which could include penalties up to 100 percent of the total amount owed or even criminal investigation.
HMRC are using information from a variety of sources, which includes private hospitals, medical insurers and NHS Trusts. A spokesperson for HMRC has said that they want taxpayers to put their tax affairs in order and pay the correct amount of tax. The spokesperson said:
“We expect the people we contact to respond and we are clear in our letters about what action we will take if they choose not to.”
According to a partner at Kingston Smith accountancy, Paul Samrah, HMRC would be “scrutinising” the private income of doctors. He said:
“Anyone who’s not reported income privately earned will be in the firing line. HMRC has loads of data that can be cross-checked.”
Doctors who didn’t respond to the Tax Health Plan in 2010 could be looking at a huge tax bill.
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